ESMA and BoE sign revised MoU
17 March 2025 UK
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The European Securities and Markets Authority (ESMA) and the Bank of England (BoE) have signed a revised Memorandum of Understanding (MoU) on cooperation and information exchange concerning three UK central counterparties.
The revised MoU follows the amendments introduced by the third European Market Infrastructure Regulation (EMIR 3) on the requirements concerning the content of such cooperation arrangements, in particular, cooperation in respect of systemically important third-country central counterparty clearing houses (CCPs).
ICE Clear Europe, LCH, and LME Clear were the three CCPs linked to the MoU, and were also recently recognised by ESMA under EMIR, temporarily extending the application of the recognition decisions under Article 25 to 30 June 2028.
ESMA has prolonged the tiering determination decisions and recognition decisions for the three recognised UK CCPs that were adopted by ESMA on 25 September 2020, to align with the expiry date of the new equivalence decision.
According to the BoE, the decision to extend recognition enables continued access to the clearing services of UK CCPs by EU participants, and supports the sound and stable functioning of markets in both the UK and EU.
Commenting on the MoU, Verena Ross, ESMA chair, says: “I welcome the update of the MoU between the Bank of England and ESMA reflecting the recent amendments to the European Market Infrastructure Regulation. This will further enhance the existing cooperation between our institutions.”
Governor of the Bank of England Andrew Bailey adds: “The Bank is responsible for supervising financial market infrastructures that are used by market participants from around the world.
“Our commitment to cooperation with other authorities enables the effective cross-border supervision of financial market infrastructures. As the lead supervisor and resolution authority for UK CCPs, we have a longstanding relationship with ESMA, and we look forward to our continued cooperation under the updated MoU.”
The revised MoU follows the amendments introduced by the third European Market Infrastructure Regulation (EMIR 3) on the requirements concerning the content of such cooperation arrangements, in particular, cooperation in respect of systemically important third-country central counterparty clearing houses (CCPs).
ICE Clear Europe, LCH, and LME Clear were the three CCPs linked to the MoU, and were also recently recognised by ESMA under EMIR, temporarily extending the application of the recognition decisions under Article 25 to 30 June 2028.
ESMA has prolonged the tiering determination decisions and recognition decisions for the three recognised UK CCPs that were adopted by ESMA on 25 September 2020, to align with the expiry date of the new equivalence decision.
According to the BoE, the decision to extend recognition enables continued access to the clearing services of UK CCPs by EU participants, and supports the sound and stable functioning of markets in both the UK and EU.
Commenting on the MoU, Verena Ross, ESMA chair, says: “I welcome the update of the MoU between the Bank of England and ESMA reflecting the recent amendments to the European Market Infrastructure Regulation. This will further enhance the existing cooperation between our institutions.”
Governor of the Bank of England Andrew Bailey adds: “The Bank is responsible for supervising financial market infrastructures that are used by market participants from around the world.
“Our commitment to cooperation with other authorities enables the effective cross-border supervision of financial market infrastructures. As the lead supervisor and resolution authority for UK CCPs, we have a longstanding relationship with ESMA, and we look forward to our continued cooperation under the updated MoU.”
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