MEPs, meeting in Strasbourg in plenary session of the European Parliament on Thursday 18 April, approved the agreement reached in March (EUROPE 12213/32) between representatives of the European Parliament and the EU Council on the new supervisory mechanism for central counterparties (CCPs) established in the European Union and third countries by 435 votes to 57 against with 51 abstentions (see EUROPE 11807/10).
The agreement provides for a dual system to distinguish CCPs according to their systemic importance and maintains the possibility, as a last resort, for the European Securities and Markets Authority (ESMA) to consider that a central clearing house established in a non-Member State is of such systemic importance that such a CCP should not benefit from the equivalence regime between the rules of its country of establishment and EU rules. The CCP in question would then be required to establish itself in the EU in order to be authorised to provide its services (see EUROPE 12199/15).
The case was considered a particular priority because of its link with Brexit. Almost 75% of interest rate derivatives that are denominated in euros, are offset in the United Kingdom, which will soon become a non-Member State once more.
See the final text of the agreement: https://bit.ly/2IB8XOl (Marion Fontana)