Brexit/EMIR newsflash: UK CCPs granted time-limited equivalence

The European Commission has announced its adoption of a time-limited Decision that CCPs established in the UK shall be considered to be equivalent to the CCP requirements set out under EMIR.  This Decision applies from 1 January 2021 (ie upon the end of the Brexit  transition/ implementation period, but is time-limited in that it expires after 18 months (on 30 June 2022).

This Decision is key because, without it, UK CCPs would be unable to provide clearing services to EU clearing members or trading venues from 1 January 2021.  It therefore grants the derivatives market much-needed relief, albeit on a temporary basis.