ESMA revisits third country CCP recognition applications

Applications had been suspended until 28 June; Chile, China, Indonesia, Israel and Malaysia will receive recognition status pending relevant conditions.

The European Securities and Markets Authority (ESMA) has begun revisiting third country CCP applications for recognition under Emir regulation.

Originally suspended until 28 June, the European securities markets regulator will now reassess applications.

Those confirmed as having pending recognition status following adopted equivalence decisions with the European Commission include Chile, China, Indonesia, Israel and Malaysia. The watchdog said it will now start processing their applications for recognition which will be granted when the relevant conditions are met.

Those to have their applications refused on the basis that they lack equivalence include Argentina, Colombia, Russia, Taiwan, Thailand and Turkey.

ESMA said it was ready to reassess applications should any of the circumstances change.

Also to apply for recognition status are LCH, ICE Clear Europe and LME Clear. The three UK-based CCPs have only been awarded a temporary three-year equivalence post-Brexit in order to allow European participants to reduce their reliance on them.

US clearing houses, however, including Fixed Income Clearing Corporation (FICC) and the Options Clearing Corporation (OCC) were recognised as Tier one central counterparties under Emir regulation earlier this month.

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