21 September 2020

AFME welcomes Commission equivalence decision on UK CCPs

Oliver Moullin, Managing Director at AFME said: “We welcome today’s confirmation that the Commission has adopted a time-limited equivalence decision for UK CCPs. This is a vital step to address an important financial stability risk and ensure continued access for EEA firms to clearing services ...

Following the confirmation of the European Commission adoption of a time-limited equivalence decision for UK CCPs, Oliver Moullin, Managing Director at AFME said:

“We welcome today’s confirmation that the Commission has adopted a time-limited equivalence decision for UK CCPs. This is a vital step to address an important financial stability risk and ensure continued access for EEA firms to clearing services at the end of the Brexit transition period. It is important that ESMA now proceeds with timely recognition.

We hope that progress will be made in the negotiations and completing equivalence assessments in other areas. We continue to encourage EU, the UK and national member states to take action to address remaining risks at the end of the transition period such as the implications of the trading obligations for shares and derivatives, and continued servicing of existing contracts.”

 

Background / note to editors:

AFME recently published a paper setting out its position on the future EU-UK relationship for financial services, calling both sides to put in place equivalence determinations and address regulatory challenges as soon as possible to minimise disruption to markets and businesses. The annex of the paper also highlights outstanding regulatory challenges for financial services that should be addressed ahead of the end of the transition period.

 

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