On 8 February 2022, the European Commission adopted an implementing decision extending market access for London clearinghouses until 30 June 2025. The implementing decision notes that the working group that the Commission appointed in 2021 on the opportunities and challenges related to transferring the clearing of derivatives from the UK to the EU have found that some transactions cleared in UK central counterparties (CCPs) simply cannot be cleared elsewhere at this point in time and that a combination of different measures will be needed to develop the EU’s own clearing capacity.
The Commission has also launched a targeted public consultation and a call for evidence on ways to expand central clearing activities in the EU and improve the attractiveness of EU CCPs in order to reduce the EU’s overreliance on systemic third-country CCPs. The aim of this consultation is also to seek stakeholders’ views on changes to supervisory arrangements for EU CCPs.
In the second half of 2022, the Commission intends to provide measures to make EU CCPs more attractive to market participants. First, the aim is to build domestic capacity, making the EU a more competitive and cost-efficient clearing hub and to enhance EU CCP’s liquidity. Secondly, it is essential that risks are appropriately managed and the EU’s supervisory framework for CCPs is strengthened, including a stronger role for EU-level supervision.
The deadline for responding to the public consultation and call for evidence is 8 March 2022.
The Commission implementing decision was subsequently published in the Official Journal of the EU on 9 February 2022.