TMX announced today that both NGX, a North American energy exchange and central clearing counterparty (CCP), and the Canadian Derivatives Clearing Corporation (CDCC), Canada's national CCP for exchange-traded derivative products, certain over-the-counter (OTC) products and repos, have received third country CCP recognition from the European Securities and Markets Authorities (ESMA), effective immediately.
Recognition as a third country CCP under European Market Infrastructure (EMIR) allows CCPs from outside of the EU to provide clearing services to clearing members or trading venues established in the EU.
"Third country CCP recognition is an important achievement for CDCC and MX as we continue to work to efficiently serve our existing European client base and attract additional clients to our market," said Alain Miquelon , President and CEO, Montréal Exchange and Group Head of Derivatives, TMX Group.
"The NGX clearing model has a proven track record in North American energy markets," added Jim Oosterbaan , President of NGX. "We are pleased to receive third country CCP recognition as an acknowledgement that NGX has met the standards of European regulators."
Pursuant to the EU Capital requirements regulation, recognition under EMIR also gives CCPs the status of being qualifying CCPs (QCCPs) in the EU. Clearing members are subject to lower capital requirements with respect to exposures to QCCPs relative to non-QCCPs.
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