ESMA announced that it will recognize three central counterparties (CCPs) established in the UK as third-country CCPs, from January 01, 2021. As part of the ESMA decisions, LME Clear Limited has been assessed as a Tier 1 CCP while ICE Clear Limited and LCH Limited have been assessed as Tier 2 CCPs. These UK CCPs will be eligible to provide services in EU after the end of the transition period following the withdrawal of UK from EU on December 31, 2020. The recognition decisions will only take effect on the day following the end of the transition period and continue to apply while the equivalence decision remains in force, which is for 18 months until June 30, 2022. EC had adopted, on September 21, 2020, the Decision 2020/1308 determining that the regulatory framework for CCPs in the UK and Northern Ireland is equivalent, until June 30, 2022, to the requirements laid down in the European Market Infrastructure Regulation (EMIR).
Related Link: Press Release
Keywords: Europe, EU, UK, Banking, Securities, Third-Country CCPs, CCPs, Brexit, Equivalence Regime, ESMA
Previous ArticleEC Deems UK Framework for CCPs Temporarily Equivalent to EMIR Rules
ESAs published the final draft implementing technical standards on reporting of intra-group transactions and risk concentration of financial conglomerates subject to the supplementary supervision in EU.
EBA published the annual report on asset encumbrance of banks in EU.
FED updated the reporting form and instructions for the FR Y-9C report on consolidated financial statements for holding companies.
EBA issued a consultation paper on the guidelines on monitoring of the threshold and other procedural aspects of the establishment of intermediate EU parent undertakings, or IPUs, as laid down in the Capital Requirements Directive.
EC published Regulation 2021/25 that addresses amendments related to the financial reporting consequences of replacement of the existing interest rate benchmarks with alternative reference rates.
BIS published a bulletin, or a note, that examines the cyber threat landscape in the context of the pandemic and discusses policies to reduce risks to financial stability.
HM Treasury, also known as HMT, has updated the table containing the list of the equivalence decisions that came into effect in UK at the end of the transition period of its withdrawal from EU.
EBA published an erratum for technical package on phase 1 of the reporting framework 3.0.
APRA updated a frequently asked question (FAQ), for authorized deposit-taking institutions, on the measurement of credit risk weighted assets.
ECB published a letter from Andrea Enria, the Chair of the Supervisory Board of ECB, answering questions raised by the President of the Bundestag (the German federal parliament) on how ECB assesses the financial stability of the euro area in the context of the significant level of nonperforming loans.