Article 25(2)(c) of European Markets Infrastructure Regulation (EMIR) requires the establishment of co-operation arrangements as a precondition for ESMA to recognise central counterparties (CCPs) established in New Zealand to provide clearing services to clearing members or trading venues established in the EU.

The European Securities and Markets Authority (ESMA) has now published a Memorandum of Understanding (MoU) it has entered into with the Reserve Bank of New Zealand and the Financial Markets Authority of New Zealand under Article 25 EMIR. The MoU establishes cooperation arrangements, including the exchange of information, regarding CCPs which are established and authorised or recognised in New Zealand, and which have applied for EU recognition under EMIR. The purpose of the MoU is two-fold:

  • ensure the fulfilment of the condition set out in Article 25(2) EMIR, i.e., that cooperation arrangements have been established as regards the covered CCPs; and
  • provide ESMA with adequate tools to monitor the on-going compliance by the covered CCPs with the recognition conditions.

The MoU is effective as of 28 February 2017.

View ESMA signs MoU on CCP with New Zealand regulators under EMIR, 18 April 2017