Interconnection between EMIR recognition and CCPs treatment

In November 2013, the International Organization of Securities Commissions (IOSCO) wrote to the European Commissioner (EC) for Internal Market and Services, highlighting issues regarding the recognition of Asia Pacific central counterparties (CCPs) under the European Markets Infrastructure Regulation (EMIR).

IOSCO has now published the EC’s response which sets out the Commission’s approach to assessing the legal and supervisory arrangements of third country jurisdictions with regard to CCPs.  The response states that the Commission recognises the “interconnection” between the EMIR recognition process and the treatment of CCP exposures under the Capital Requirements Regulation (CRR) which means that some CCPs may need to seek recognition under EMIR.  The Commission intends to carefully assess the timeframe to compete the CCP equivalence assessments and will consider extending the EMIR time period in line with the CRR if the Commission considers the relevant criteria have been fulfilled.

Related links:

http://www.iosco.org/committees/aprc/pdf/20131122_APRC_letter_to_EU.pdf

http://www.iosco.org/committees/aprc/pdf/20131220_Response_from_EU_to_APRC_letter.pdf