On 11 December 2019, the European Securities and Markets Authority (ESMA) issued a final report containing draft amendments to Commission Implementing Regulation (EU) 2016/1646, which specifies the main indices and recognised exchanges pursuant to paragraph 8 of Article 197 of the Capital Requirements Regulation (CRR).
ESMA is introducing amendments to the Implementing Regulation to ensure that the most relevant criteria are applied to specify the main indices, and that the list of recognised exchanges is updated to reflect legislative changes and changes in market structures. The amendments will also provide credit institutions and investment firms with the option to use, as eligible collateral, instruments traded on new European exchanges, as well as instruments traded on third country exchanges, from those jurisdictions for which the European Commission has adopted equivalence decisions under Article 25(4) of MiFID II as now required under the revised CRR (CRR II).
ESMA has provided two versions of the amendments in light of Brexit. One set includes UK exchanges and is to be used where the UK and EU reach a deal. The other set excludes UK exchanges where the UK leaves the EU without a deal.
ESMA has submitted the final report to the Commission, which now has three months to decide whether to endorse the proposed amendments.