On Wednesday, 8 June, the European Commission adopted three decisions establishing that the legal and supervisory frameworks for central counterparties (CCPs) in Chile, Malaysia, and Indonesia are equivalent to the requirements applicable in the European Union under the European Market Infrastructure Regulation (EMIR).
Thus, Chilean, Malaysian, and Indonesian CCPs can apply for recognition by the European Securities and Markets Authority (ESMA). Once recognised, these central counterparties will be able to provide EU clearing members and trading venues central clearing services in the EU.
The European Commission also amended the existing equivalence decisions for South African and Indian CCPs, which have undergone changes. EU clearing members’ access to these foreign CCPs will be facilitated (see EUROPE 12925/22).
CCPs are organisations that operate between the buyer and the seller of a derivative contract, becoming the buyer to every seller and the seller to every buyer. (Original version in French by Anne Damiani)