On 20 December 2018, European Securities and Markets Authority (ESMA) issued a public statement stating that it is ready to review UK central counterparties’ (CCPs) and Central Securities Depositories’ (CSDs) recognition applications for a no-deal Brexit scenario.
ESMA states that it aims to recognise UK CCPs in a timely manner, where the four recognition conditions under Article 25 of EMIR are met.
To ensure continued access to UK CCPs for EU clearing members and trading venues, ESMA aims to adopt the recognition decisions well ahead of the Brexit date. Similarly to the equivalence decision, they will take effect on the date following the Brexit date, under a no-deal scenario.
ESMA states that it will follow a similar process, as described for UK CCPs, for the recognition of the UK CSDs as third country CSDs under the CSD Regulation in a no-deal Brexit scenario.