On 11 December 2020, the European Securities and Markets Authority (ESMA) issued a press release announcing that Euroclear UK & Ireland Limited (EUI), the central securities depository (CSD) established in the United Kingdom (UK), will be recognised as a third-country CSD (TC-CSD) after the end of the UK’s transition from the European Union (EU) on 31 December 2020.

ESMA’s recognition decision will apply from 1 January until 30 June 2021. ESMA believes that this period should give concerned EU issuers sufficient time to transfer their securities to EU CSDs.

The press release states that ESMA’s decision to recognise EUI as a TC-CSD after the end of the transition period will allow EUI to continue providing for a limited period of time the following services in the EU:

  • Notary and central maintenance services in respect of securities constituted under the law of Ireland.
  • Central maintenance services in respect of underlying securities constituted under the laws of Cyprus, Luxembourg and the Netherlands, which are represented in the EUI CREST system by means of depository interests.