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ESMA has adoped these recognition decisions in order to limit the risk of disruption in central clearing and to avoid any negative impact on the financial stability of the EU.
ESMA has previously communicated, in its statements of 23 November, 19 December 2018 and 4 February 2019, that its Board of Supervisors supports continued access to UK CCPs. Having assessed the applications and the information submitted by the three CCPs, and consulted the relevant authorities in accordance with EMIR, ESMA considers that the conditions for recognition under Article 25 of EMIR are met by the three CCPs in case of a no-deal Brexit. Therefore, it has adopted decisions to recognise the three CCPs as third country CCPs under EMIR.
The recognition decisions would take effect on the date following Brexit date, under a no-deal Brexit scenario.
ESMA has previously communicated that its Board of Supervisors also supports continued access to the UK CSD. That recognition process is still on-going, the results of which will be published as soon as the process is finalised.