A top priority for monitoring in 2018, Brexit will remain at the top of the European Securities and Markets Authority's (ESMA) agenda in 2019.
“The coming year will be crucial for the implementation of Brexit-related contingency plans for both credit rating agencies and trade repositories”, they said in their work programme, published Tuesday, February 19 February.
ESMA currently monitors 12 credit rating agencies and trade repositories that are based in the United Kingdom. The majority of them have already expressed their intention to continue providing their services in the EU after Brexit and have already put in place several preparatory measures, explained the Authority.
In addition, the Authority will monitor whether EU ratings are being transferred to a rating agency registered in the Twenty-seven and whether EU counterparties that previously provided their data to the UK trade repositories will transfer their data to a trade repository within the Twenty-seven.
With regard to recognising British central clearing houses (CCPs), ESMA reiterated its commitment to ensuring continued access for EU clearing members and customers in the case of a no-deal Brexit, as set out in the Memorandum of Understanding signed in early February with the Bank of England (see EUROPE 12187).
The Authority will continue to devote resources to Brexit after March 29 2019 to ensure “a smooth transition between the pre-Brexit and post-Brexit periods” they said. (Original version in French by Marion Fontana)