ESMA extends recognition decisions for 3 UK CCPs in the event of a no-deal Brexit
24 Dec 2019 09:53 AM
The European Securities and Markets Authority (ESMA) has announced that it has extended the recognition decisions for the 3 central counterparties (CCPs) established in the UK to reflect the extension of the expiry date of the Implementing Decision (EU) 2018/2031 of the EC on the equivalence of the UK CCP legal framework.
ESMA announced on 18 February and 5 April 2019 that in the event of a no-deal Brexit, it would recognise the three UK CCPs.
On 29 October 2019 the European Council took a decision in agreement with the United Kingdom to extend the period under Article 50(3) TEU. Furthermore, on 19 December 2019 the European Commission adopted Implementing Decision (EU) 2019/2211 amending Implementing Decision (EU) 2018/2031. As a result, Implementing Decision (EU) 2018/2031 is now set to expire one year after the date referred to in the second paragraph of Article 2 of that Decision. ESMA has consequently amended the recognition decisions for the three UK CCPs to extend them until this new expiry date.
The recognition decisions would take effect on the date following Brexit date, under a no-deal Brexit scenario.