FIA welcomes and appreciates the work of European Commission Executive Vice President Valdis Dombrovskis and his staff on their recent announcement of a one-year equivalence determination in the case of a no-deal Brexit for UK CCPs, which was published today in the Official Journal of the European Union. Last month, 14 trade associations requested an extension beyond the previous expiration of 30 March 2020.
“We thank Executive Vice President Dombrovskis and his staff for the extension of the temporary equivalence deadline,” said FIA President and CEO Walt Lukken. “With the recent elections in the U.K., Brexit will become more real every day, and the need for regulators to be nimble and to work with the industry during this transition is extremely important. The announcement is good news for our members and for financial stability.”
The one-year extension applies in a no-deal scenario until 1 February 2021. The European Securities and Markets Authority has also extended its recognition decisions for UK CCPs in the event of a no-deal Brexit following the amendment of the EC equivalence decision.
FIA looks forward to further engagement with the EC and other stakeholders on delivering permanent equivalence for UK CCPs post Brexit under the new EU rules on CCP supervision.