ESMA Collaborates With European Commission To Recognize UK CCPS In Event Of 'No Deal'

Author:Mr Cadwalader, Wickersham & Taft LLP
Profession:Cadwalader, Wickersham & Taft LLP

The European Securities and Market Authority ("ESMA") is working with the European Commission to plan "preparatory actions for the recognition process of UK [central counterparty clearing houses]" ("CCPs") in the event of a "no-deal" situation.

In a public statement, ESMA highlighted the European Commission Contingency Action Plan (the "Action Plan") published on November 13, 2018 which addressed financial stability risks in the European Union arising from UK withdrawal without any agreement. ESMA emphasized that in the event of a UK withdrawal without an agreement, the European Commission plans to adopt a "temporary and conditional equivalence decision" to...

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