Final EU Equivalence Decisions on Regulatory Regimes Under the European Market Infrastructure Regulation Published
12/16/2016Ten decisions on the equivalence of third country regulatory regimes under the European Market Infrastructure Regulation were published in the Official Journal of the European Union.
CCPs established in third countries whose supervisory and legal regimes have been deemed to be equivalent to the EU regime may provide clearing services to clearing members or trading venues established in the Union. Such a CCP must be recognized by the European Securities and Markets Authority in accordance with the processes outlined in EMIR. The regulatory and legal regimes of India, New Zealand, Japan, Brazil, Dubai International Financial Centre and the UAE have been granted equivalence in relation to CCPs.
Derivative contracts traded on exchanges with equivalence status are not deemed to be OTC derivatives under EMIR and therefore are not subject to the obligation to clear the transactions, report on them and undertake risk mitigation steps as if they were OTC. To be deemed equivalent, a third country market must comply with legally binding requirements in its home state equivalent to the European Market Infrastructure Regulation and must also be subject to effective supervision and enforcement in that third country on an ongoing basis. The following exchanges have been granted equivalence status in Singapore: Singapore Exchange Derivatives Trading Limited, Singapore Exchange Securities Trading Limited and ICE Futures Singapore; in Canada, among others: Bourse de Montréal Inc., Canadian Securities Exchange, ICE Futures Canada Inc. and the TSX Inc.; in Japan, among others: the Tokyo Stock Exchange Inc., Osaka Exchange Inc., Tokyo Financial Exchange Inc. and Tokyo Commodity Exchange Inc.; and in Australia: ASX, ASX24 and Chi-X.
The Decisions entered into force on January 5, 2017.
View the equivalence decisions for CCPs for India, New Zealand, Japan, Brazil, DIFC, and UAE.
View the equivalence decisions for exchanges for Singapore, Canada, Japan and Australia.