Featured Product

    EC Deems SEC Regime for Central Counterparties Equivalent to EU Rules

    January 28, 2021

    EC adopted an equivalence decision determining that the SEC regime for U.S. central counterparties is equivalent to the EU rules. The equivalence decision determines that the legal and supervisory arrangements applicable to U.S. central counterparties registered with SEC can be considered to be equivalent to requirements laid down in the European Market Infrastructure Regulation (EMIR). The decision will allow such U.S. central counterparties to apply for recognition by ESMA. Once ESMA recognizes them, these U.S. central counterparties will be able to provide central clearing services in EU. The decision shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

    The responsibility for supervision of central counterparties in the U.S. is shared between SEC and CFTC. This decision complements the existing equivalence decision for U.S. central counterparties regarding CFTC, which was adopted in 2016. The equivalence decision applies only to SEC-regulated covered clearing agencies and is conditional. To be allowed to offer services in EU, the U.S. central counterparties will have to have rules in place with respect to certain risk management requirements. ESMA already recognized a number of U.S. central counterparties registered with, and supervised by, CFTC. EC plans to review the rationale for equivalence every three years. For EC to adopt an equivalence decision, a third-country regime has to fulfil three conditions laid down in EMIR:

    • Central counterparties authorized in the third country must comply with legally binding requirements that are equivalent to requirements laid down in EMIR
    • Central counterparties in the third country must be subject to effective supervision on an ongoing basis.
    • The legal framework of the third country must provide for an effective equivalent system for the recognition of foreign central counterparties.

     

    Related Links

    Effective Date: OJ+20 Days

    Keywords: Europe, Americas, EU, US, Banking, Central Counterparty, CCPs, Derivatives, Central Clearing, Equivalence Regime, CFTC, SEC, EC

    Related Articles
    News

    EBA Launches Stress Tests for Banks, Issues Other Updates

    The European Banking Authority (EBA) launched the 2023 European Union (EU)-wide stress test, published annual reports on minimum requirement for own funds and eligible liabilities (MREL) and high earners with data as of December 2021.

    January 31, 2023 WebPage Regulatory News
    News

    EBA Proposes Standards for IRRBB Reporting Under Basel Framework

    The European Banking Authority (EBA) proposed implementing technical standards on the interest rate risk in the banking book (IRRBB) reporting requirements, with the comment period ending on May 02, 2023.

    January 31, 2023 WebPage Regulatory News
    News

    FED Issues Further Details on Pilot Climate Scenario Analysis Exercise

    The U.S. Federal Reserve Board (FED) set out details of the pilot climate scenario analysis exercise to be conducted among the six largest U.S. bank holding companies.

    January 17, 2023 WebPage Regulatory News
    News

    US Agencies Issue Several Regulatory and Reporting Updates

    The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.

    January 04, 2023 WebPage Regulatory News
    News

    ECB Issues Multiple Reports and Regulatory Updates for Banks

    The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.

    January 01, 2023 WebPage Regulatory News
    News

    HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements

    The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.

    December 30, 2022 WebPage Regulatory News
    News

    EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR

    The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.

    December 29, 2022 WebPage Regulatory News
    News

    CBIRC Revises Measures on Corporate Governance Supervision

    The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.

    December 29, 2022 WebPage Regulatory News
    News

    HKMA Publications Address Sustainability Issues in Financial Sector

    The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.

    December 23, 2022 WebPage Regulatory News
    News

    EBA Updates Address Basel and NPL Requirements for Banks

    The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.

    December 22, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8700