On 19 December 2019, the European Commission (Commission) adopted an Implementing Decision (Amending Decision) amending Implementing Decision (EU) 2018/2031 (Temporary Equivalence Decision) regarding the temporary equivalence of the UK’s regulatory framework for central counterparties (CCPs) under the regulation on over-the-counter derivatives, CCPs and trade repositories (EMIR). For further information on the Temporary Equivalence Decision, see our previous blog.
The Amending Decision replaces the fourth paragraph in Article 2 of the Temporary Equivalence Decision with the following text: ‘It shall expire one year after the date referred to in the second paragraph.’ The effect of this amendment is that the Temporary Equivalence Decision will now expire on 31 January 2021, however this will only apply in the event of a no-deal Brexit. The decision will also not apply if a withdrawal agreement enters into force before the date on which the EU Treaties cease to apply to and in the United Kingdom.
The Commission expects to announce any further Decisions relating to the temporary equivalence of UK CCPs at least six months before the expiry date of the Temporary Equivalence Decision.