On 8 July 2022, the European Securities and Markets Authority (ESMA) issued a public statement providing an update on those third country central counterparties’ (TC-CCPs) applications for recognition under the European Market Infrastructure Regulation (EMIR) that were suspended until 28 June 2022.

Among other things the public statement notes:

  • As regards TC-CCPs which are established in jurisdictions for which the European Commission has recently adopted equivalence decisions, i.e. Chile, China, Indonesia, Israel and Malaysia, the ESMA has  started processing their applications for recognition under Article 25 of EMIR and will adopt decisions granting recognition once the relevant recognition conditions are met.
  • For TC-CCPs which are established in jurisdictions for which the Commission did not adopt equivalence decisions by 28 June 2022, i.e. Argentina, Colombia, Russia, Taiwan, Thailand and Turkey, the ESMA will start the process for refusing recognition due to the lack of an equivalence decision. Should the Commission adopt the relevant equivalence decision in the future, a TC-CCP, whose application was originally refused, can re-apply for recognition to the ESMA.
  • Until the ESMA has taken a decision on granting or refusing a recognition under the EMIR, a TC-CCP, who had applied under the EMIR transition provisions, and currently provides clearing services in a Member State under national law, may continue to provide clearing services in that Member State.