Three UK clearing houses will be recognised as third country CCPs under EMIR while the European Commission’s temporary equivalence decision is in place.
After confirming plans to adopt a time-limited equivalence decision in July, the European Commission has said equivalence for UK CCPs will now end in mid-2022.
As the European Commission finalises EMIR 2.2, it has confirmed a temporary equivalence decision for UK CCPs from January 2021.
The European Parliament has confirmed the open access regime will be delayed for a year due to the impact of the coronavirus pandemic.
ESMA and the FCA have urged trading venues and CCPs to prioritise continuity of their services as the open access regime comes into force in early July.
Clearing houses have been urged to consider how they can avoid and mitigate risks resulting in non-default losses.
The EU authority’s new powers include increased oversight of third-country equivalence assessments working alongside the European Commission.
European Commission vice president, Valdis Dombrovskis, said in London today that the EU plans to extend the temporary equivalence for UK CCPs.
AFME, FIA, ISDA and other trade groups have written to the European Commission seeking an extension to equivalence, due to expire in March 2020.
BlackRock, Goldman Sachs, Allianz, JP Morgan and Vanguard are among those raising concerns about CCPs, urging regulators to take action.