FIA welcomes the statement from European Commission Vice President Valdis Dombrovskis today proposing to renew the time-limited equivalence decision for UK CCPs. As set out in the joint trade associations letter to the Commission published on Tuesday, without an extension beyond the current expiry date of 30 March 2020, EU clearing members would not be able to continue as direct members of UK CCPs in the event of a no-deal Brexit, and EU counterparties would not be able to clear derivatives subject to the clearing obligation on those CCPs. FIA looks forward to confirmation of further details of the extension as soon as possible.
“We thank Vice President Dombrovskis for his comments on extending the temporary equivalence deadline to a workable deadline reflecting the extension of the date on which the UK is set to leave the EU,” said FIA President and CEO Walt Lukken. “Today’s comments are good news for our members and welcome news for financial stability.”