The European Commission (the Commission) has determined that Canada, Switzerland, South Africa, Mexico and the Republic of Korea have EU equivalent regulatory regimes for central counterparties (CCPs).
The CCPs in these countries will be able to obtain recognition in the EU and market participants will be able to use them to clear standardised over-the-counter derivative trades as required by the European Market Infrastructure Regulation (EMIR). CCPs that have been recognised under the EMIR process will also obtain qualifying CCP (QCCP) status across the EU under the Capital Requirements Regulation, meaning that EU banks’ exposures to these CCPs will be subject to a lower risk weighting in calculating their regulatory capital.
The Commission’s decisions follow its October 2014 equivalence determinations for CCPs in Australia, Singapore, Japan and Hong Kong.
The latest equivalence decisions have been published in the Official Journal of the EU.