City clearing houses are given no-deal Brexit access

UK clearing houses approved to continue EU business under no deal Brexit

UK clearing houses approved to continue EU business under no deal Brexit

If the British leave the European Union without proper agreements with Brussels, three so-called clearing houses from London can still serve customers across the Channel.

In a major boost for the City, stock, bond and derivatives transactions will now face no disruption immediately after 29 March regardless of the outcome of Brexit.

The European Securities and Markets Authority issued the licences to three clearing houses yesterday after Brussels came under pressure to provide assurances that cross-border derivatives contracts would be recognised if Britain were to crash out of the bloc.

ICE Clear Europe president Finbarr Hutcheson said: "We thank the European Commission, Bank of England, and European Securities and Markets Authority (ESMA) for its work securing this recognition and, in doing so, removing any uncertainty around the ability of EU-based market participants to access ICE Clear Europe".

Henderson joins Ireland squad for Rome trip
Another Ulsterman though is out of contention for the trip with Will Addison rehabbing back stiffness at his province. The Ulster lock was cited for unsafe play for a tackle during Saturday's Pro14 win over the Ospreys in Bridgend.

The regulator also plans to recognise United Kingdom central securities depositories - financial institutions that hold stocks or bonds which can be easily transferred - with the process ongoing.

The recognition decisions would take effect on the date following Brexit date, under a no-deal Brexit scenario.

Michael Voisin, global head of capital markets at law firm Linklaters, said the move by Esma is positive but that there is still no equivalent measure for UK-based trading venues.

The supervision applies to ESMA's trade repositories (TRs), credit rating agencies (CRAs), and the monitoring of third-country market infrastructures such as third-country central clearing counterparties (TC-CCPs) and third-country central securities depositories (TC-CSDs).

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.