The European Securities and Markets Authority (ESMA) has today announced that in the event of a no-deal Brexit, three central counterparties (CCPs) established in the United Kingdom (UK) – LCH Limited, ICE Clear Europe Limited and LME Clear Limited – will be recognised to provide their services in the European Union.
Commenting on this announcement, Miles Celic, Chief Executive Officer, TheCityUK, said,
It’s good to see EU regulators starting to catch up with their UK counterparts in the final sprint to mitigate the considerable financial stability risks which would be posed by a no-deal Brexit. These permissions for clearing are a helpful step forward, but they are only a partial and temporary fix. The industry is also doing everything it can to minimise risks and disruption, but failure to agree a Brexit deal remains the worst of all outcomes. Time is running out to resolve these technical issues, and while such temporary fixes are essential, long-term stable solutions are needed to provide the certainty that customers and clients across the whole of Europe and beyond need.”