The European Securities and Markets Authority (ESMA) has published a letter that it has sent to the European Commission (Commission) setting out its views on the recent proposals for a Regulation amending Regulation (EU) 648/2012 on over-the-counter derivatives, central counterparties and trade repositories (EMIR), specifically as regards the requirements for the recognition of third country central counterparties.

In the letter ESMA states that it believes that enhancing the implementation and monitoring of the equivalence decisions on third country regimes by providing the ability to the Commission to set specific conditions represents a “significant improvement”.

ESMA also states in the letter:

“Considering the impact of the UK’s withdrawal from the EU and the associated emergence of certain third country entities with a potential impact on EU financial stability and investor protection, we would like to invite the Commission to consider whether similar proposals should be considered for other market infrastructures and key market players. In line with our response to the public consultation on the operation of the ESAs, this should, in ESMA’s view, include third country regimes for credit rating agencies, trade repositories, benchmarks, and possibly trading venues, and data providers.”

View ESMA letter to European Commission on third-country regimes, 10 July 2017