Cboe Clear Europe becomes first non-UK CCP to receive permanent UK recognition

The European CCP had previously been operating under the UK’s Temporary Recognition Regime following the end of the UK and the EU’s transition period in 2020.

Cboe’s Amsterdam-based clearing house, Cboe Clear Europe, has become the first non-UK CCP to receive permanent recognition.

The recognition was effective 10 January, and applies to cash equities and equity derivatives.

Cboe Clear Europe had previously been operating under the UK’s Temporary Recognition Regime following Brexit, while it awaited permanent recognition.

“This recognition is an important milestone for Cboe Clear Europe and the wider industry by removing the Brexit uncertainty faced by UK participants and venues wishing to access our services,” Arnoud Siegmann, interim president and chief operating officer at Cboe Clear Europe, told The TRADE.

“It helps to ensure a competitive clearing environment continues to exist in the UK equities markets and allays any immediate concerns around the continuation of interoperability across Europe being impacted by CCP recognition. Securing permanent recognition and the subsequent stability it provides will also help us revive conversations with exchange groups on further expanding the open access model in cash equities, ultimately benefitting market participants.”

Conversely, UK-based CCPs have not been granted the same recognition in the EU.

European regulators offered ICE Clear Europe, LCH and LME a three-year temporary equivalence until June 2025 earlier this year. However, these measures were not taken with a long-term equivalence decision in mind and were instead put in place to allow participants in the EU to reduce their reliance on them and any negative “short term cliff-edge” effects.