On 28 September 2020, the European Securities and Markets Authority announced that three central counterparties (CCPs) established in the UK – ICE Clear Europe Limited, LCH Limited, and LME Clear Limited – will be recognised as third country CCPs (TC-CCPs) eligible to provide their services in the EU, after the end of the transition period following the withdrawal of the UK from the EU on 31 December 2020.
The three UK CCPs have submitted to ESMA their applications to be recognised as TC-CCPs under EMIR and, based on these, ESMA has conducted the tiering and recognition assessments, including consulting the relevant authorities in accordance with EMIR.
ESMA has adopted the following tiering decisions:
- LME Clear Limited has been assessed as a Tier 1 CCP.
- ICE Clear Limited as a Tier 2 CCP.
- LCH Limited as a Tier 2 CCP
The recognition decisions will only take effect on the day following the end of the transition period and continue to apply while the equivalence decision remains in force, which is for 18 months until 30 June 2022.