ESMA extends the tiering and recognition of the three UK-based CCPs

The European Securities and Markets Authority (ESMA) has announced a temporary extension of recognition decisions for three central counterparties (CCPs) established in the United Kingdom. This decision comes after the European Commission adopted a new equivalence decision on January 30, 2025, regarding the UK's regulatory framework for CCPs. The three affected CCPs are ICE Clear Europe Ltd, LCH Ltd, and LME Clear Ltd. ESMA initially adopted recognition decisions for these CCPs on September 25, 2020. The temporary extension will align with the expiry date of the new equivalence decision. The tiering determination decisions and recognition decisions will now be in effect until June 30, 2028. ESMA has also signed a revised Memorandum of Understanding (MoU) with the Bank of England, as required by EMIR 3. This MoU is a necessary step in the process. The extension ensures continued cooperation and stability in the financial markets. ESMA's decision aims to maintain a smooth functioning of the European financial system. Further information on this topic can be obtained from Cristina Bonillo, Senior Communications Officer at ESMA.