ESMA to recognize the UK Central Securities Depository in case of a hard Brexit

The European Securities and Markets Authority (ESMA) has issued a statement saying that it would recognize the UK Central Securities Depository (CSD) – Euroclear UK and Ireland Limited – as a non-EU CSD, which will allow it to offer its services within the European Union.

ESMA made this decision so as to make it possible for the UK CSD to continue serving Irish stocks in order to prevent any negative repercussions on the Irish stock market. ESMA has previous stated that its Supervisory Board prefers to allow the UK CSD continued access to EU markets.

Having reviewed the information submitted and the UK CSD application in its entirety as well as consulting other pertinent authorities in line with the Central Securities Depositories Regulation (CSDR), ESMA believes that all the requirements for recognition outlined in Articles 25 of CSDR have been met by the UK CSD in the event of a hard Brexit. Therefore, it has decided to recognize the UK CSD as a third-country CSD in accordance with the CSDR.

This decision will take effect on the next date after Brexit Day if a hard Brexit happens.

Last week, ESMA has also announced the registration of DTCC Data Repository (Ireland) PLC as a trade repository governed by the European Market Infrastructure Regulation (EMIR).

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