The Bank of England (BoE) has released a statement endorsing the decision by the European Securities and Markets Authority (ESMA) to extend EU’s recognition of UK CCPs. The bank believes that the decision “enables continued access to the clearing services of UK CCPs by EU participants and supports the sound and stable functioning of markets in both the UK and EU”.
ESMA’s recognition of UK CCPs follows the European Commission’s extension of equivalence for UK CCPs until 30 June 2028, announced in January this year. ESMA and BoE recently signed a revised memorandum of understanding (MoU) to reflect the new requirements under the European Market Infrastructure Regulation (EMIR) concerning systemic third-country CCPs – in the UK’s case, covering Ice Clear Europe, LCH, and LME Clear.
BoE’s governor Andrew Bailey states the importance of UK’s cooperation with “other authorities” to enable “the effective cross-border supervision of FMIs”.
