The European Securities and Markets Authority (ESMA) and the Bank of England (BoE) have signed a revised memorandum of understanding (MoU) regarding the “cooperation and information exchange concerning the three CCPs established in the UK” – as quoted from the press release. The revision to the MoU reflects the recent decision by the European Commission to extend the equivalence for UK CCPs until 30 June 2028.
The three CCPs involved are ICE Clear Europe, LCH, and LME Clear. Under the European Market Infrastructure Regulation (EMIR), these CCPs are recognised as systemic third-country CCPs, which requires “the establishment of cooperation arrangements between ESMA and the relevant third-country authority”.
In its revised version, the MoU takes into account the amendments introduced by EMIR 3 that concern the requirements of these cooperation arrangements. The new MoU replaces the version that was signed between ESMA and BoE in 2020.
