BREXIT and CCP temporary equivalence decision
On 21 September 2020, the European Commission adopted a temporary equivalence decision for the regulatory framework applicable to the United Kingdom on central counterparties (CCPs), for a period of eighteen months from 1 January 2021, in order to counter any potential risks to financial stability.
It believes that this equivalence period should give the clearing members established in the Union the time to reduce their exposure to UK market infrastructure and CCPs established in the Union the time to further develop their capacity to clear relevant trades. Following this equivalence decision, on 28 September 2020 the ESMA adopted decisions to recognise three UK CCPs (LCH Ltd, ICE Clear Ltd and LME Clear Ltd). These are effective from the expiry date of the transition period for a duration of 18 months, or until 30 June 2022.