Sun. Dec 4th, 2022

Brussels, 28 September 2022

The European Commission has today adopted two decisions determining that the legal and supervisory frameworks for central counterparties (CCPs) in Colombia and in Taiwan are equivalent to the requirements applicable under the European Market Infrastructure Regulation (EMIR).

Today’s decisions allow these CCPs to apply for recognition by the European Securities and Markets Authority (ESMA). Once recognised, such CCPs will be able to provide central clearing services in the EU to EU clearing members and trading venues. These decisions are in the EU’s interest since they will facilitate EU clearing members’ access to these foreign CCPs and to clearing products denominated in local currencies. CCPs are bodies that operate between the buyer and seller of a derivative contract, becoming the buyer to every seller and the seller to every buyer. Their use was encouraged by the G20 following the financial crisis, to reduce risk in derivatives trading. Derivatives markets are global in nature.

The European Market Infrastructure Regulation (EMIR) provides a framework for the recognition of non-EU central counterparties. That framework ensures that non-EU CCPs that comply with requirements that are equivalent to those laid down in EMIR may offer central clearing services in the European Union. To ensure that its equivalence decisions remain adequate, the Commission reviews them where necessary. 

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