EU confirms CCP parity for six markets
09 January 2017 Brussels
Image: Shutterstock
The European Commission has recognised the regulatory standard of central counterparties (CCP) based in six global markets as being EU equivalent.
CCPs in Dubai, India, Brazil, New Zealand, Japan and the United Arab Emirates are all now considered to be of “internationally-recognised best practice”, according to the commission.
The allocation will allow for smoother activity between CCPs in the equivalent markets by cutting red tape in cross-border business.
The move is expected to open up new liquidity sources for EU asset owners and improve collateral management efficiency at a time when many are predicting a shortage of high-quality liquid assets in the short to medium term, caused by the latest wave of EU regulatory requirements.
Commenting on the recognition of Dubai's CCPs, Ian Johnston, chief executive of the Dubai Financial Services Authority, said: “The Dubai International Financial Centre has firmly established itself as the central gateway through which international and regional financial institutions conduct business across the region.”
“The recognition received from the commission for our regulatory framework for CCPs, will further strengthen the confidence market participants already have when operating in our centre.”
The latest additions will join already recognised regimes including those in the US, Canada, Switzerland, Australia, Hong Kong and Singapore.
CCPs in Dubai, India, Brazil, New Zealand, Japan and the United Arab Emirates are all now considered to be of “internationally-recognised best practice”, according to the commission.
The allocation will allow for smoother activity between CCPs in the equivalent markets by cutting red tape in cross-border business.
The move is expected to open up new liquidity sources for EU asset owners and improve collateral management efficiency at a time when many are predicting a shortage of high-quality liquid assets in the short to medium term, caused by the latest wave of EU regulatory requirements.
Commenting on the recognition of Dubai's CCPs, Ian Johnston, chief executive of the Dubai Financial Services Authority, said: “The Dubai International Financial Centre has firmly established itself as the central gateway through which international and regional financial institutions conduct business across the region.”
“The recognition received from the commission for our regulatory framework for CCPs, will further strengthen the confidence market participants already have when operating in our centre.”
The latest additions will join already recognised regimes including those in the US, Canada, Switzerland, Australia, Hong Kong and Singapore.
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