ESMA updates on third-country CCP recognition decisions

The updates include the review of recognitions of TC-CCPs that were already previously recognised, the conclusion of revised Memoranda of Understanding (MoUs) with relevant third country authorities, as well as the first-time recognition of the National Securities Clearing Corporation (NSCC).

On 22 March 2022, ESMA completed the tiering and review of the recognition decisions of 25 TC-CCPs recognised by ESMA prior to September 2020, under Article 89(3c) of EMIR and in accordance with Article 25 of EMIR. For a number of TC-CCPs, ESMA is still waiting for some additional clarifications, including from the European Commission (EC) regarding relevant equivalence decisions, in order to finalize the review of recognition process.

ESMA also recognised for the first time NSCC, which is authorised and supervised by the US Securities and Exchange Commission (SEC), as a Tier 1 CCP under Article 25 of EMIR following the adoption by the EC of a Commission Implementing Decision (EU) 2021/85 on the equivalence to the requirements of EMIR of the United States regulatory framework for central counterparties that are authorised and supervised by the SEC in January 2021.

As pre-requisite to the recognition process, ESMA has to conclude modified or new MoUs with the relevant third country authorities to reflect key amendments to EMIR introduced by Regulation (EU) No 2019/2099 .

The 16 signed MoUs enhance the supervisory cooperation arrangements between ESMA and the relevant third country authorities, whose legal and supervisory framework for CCPs have been deemed equivalent to EMIR by the European Commission. All MoUs between ESMA and third country authorities are published on the ESMA website.

The detailed list of recognised TC-CCPs is published on the ESMA website (europa.eu)).