Home   News   Features   Interviews   Magazine Archive   Symposium   Industry Awards  
Subscribe
Securites Lending Times logo
Leading the Way

Global Securities Finance News and Commentary
≔ Menu
Securites Lending Times logo
Leading the Way

Global Securities Finance News and Commentary
News by section
Subscribe
⨂ Close
  1. HomeRegulation news
  2. ESMA to recognise UK CCPs and CSD in no-deal Brexit scenario
Regulation news

ESMA to recognise UK CCPs and CSD in no-deal Brexit scenario


05 February 2019 Brussels
Reporter: Becky Butcher

Generic business image for news article
Image: Shutterstock
The European Securities Markets Authority (ESMA) has agreed a deal with the Bank of England for the recognition of central counterparties (CCPs) and of the central securities depository (CSD) established in the UK, should there be a no-deal Brexit scenario.

Last year, ESMA announced through various public statements that its board of supervisors supports continued access to UK CCPs and to the UK CSD, in order to limit the risk of disruption in central clearing and to avoid any negative impact on the financial stability of the EU. It will also allow the UK CSD to continue to serve Irish securities and to limit the risk of disruption to the Irish securities market.

According to ESMA, it aims to recognise UK CCPs and the UK CSD in a “timely manner”, where the four recognition conditions under Article 25 of European Market Infrastructure Regulation, and the four recognition conditions under Article 25 of CSDR are met, respectively.

The new deal satisfies the third recognition condition—establishment of cooperation arrangements—under both regulations.

The deal also ensures that cooperation arrangements have been established regarding the CCPs and CSD and provide ESMA with adequate tools to monitor their ongoing compliance with the recognition conditions and to assess any material risk they pose, directly or indirectly, to the EU or any of its Member States, including to their financial stability.

ESMA aims to complete the next steps for the recognition of the UK CCPs and the UK CSD and to adopt the recognition decisions well ahead of Brexit date. The recognition decisions would take effect on the date following Brexit date, under a no-deal Brexit scenario.
← Previous regulation article

FCA to improve shareholder engagement
Next regulation article →

IHS Markit bolsters team for SFTR reporting
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
Advertisement
Subscribe today
Knowledge base

Explore our extensive directory to find all the essential contacts you need

Visit our directory →

Discover definitions, explanations and related news articles in our glossary

Visit our glossary →