EuroCCP has received authorisation under
the European market infrastructure regulation (EMIR), the second central counterparty (CCP) to receive the green light from regulators.
The interoperable cash equities clearing
house received its authorisation from De Nederlandsche Bank (DNB), its EMIR
national competent authority, meaning it fully complies with EMIR’s
requirements for CCPs.
To gain authorisation, EuroCCP needed to
demonstrate it had robust risk management, governance and capital to cope with
the event of a member default as part of tough new safety requirements for
By gaining authorisation from not only DNB
but a college of 19 regulators and the European Securities and Markets
Authority (ESMA), EuroCCP will be able to do business in any EU member state,
which Diana Chan, CEO of EuroCCP, said will increase its business
“Receiving authorisation under EMIR gives
us a passport to operate anywhere in the EU. Previously, in Germany and France,
CCPs had to have a banking licence to operate due to national regulations,” she
“Now, we will be able to offer clearing of
German equities traded on Equidict, which we already clear for in other
jurisdictions, and we can also clear for French venues.”
EuroCCP is the second CCP to receive
authorisation under EMIR. Nasdaq OMX Clearing was the first, and received the
green light from European regulators on 19 March, starting a countdown for ESMA
to develop its clearing obligations for OTC derivatives.