ESMA releases list of authorized counterparties outside the EU

As the European rulings on post-trade processing continue to take shape, the European Securities and Markets Authority has today published a list of central counterparties (CCPs) which are established in countries located outside the European Union and European economic area, that have applied for recognition under the European Union regulatory framework on OTC derivatives, CCPs and trade repositories in accordance with the European Market Infrastructure Regulation (EMIR).

The list comprises of thirty-eight executing venues, clearing houses, exchanges, diversified market places and depositories, which are located in various regions including Australia, the Asia Pacific, Israel, and North America.

Should the entities be subject to acceptance of their applications, the attainment of an international standard with regard to post trade processing and reporting will become closer, with the European rulings emulating those of North America, and these entities able to process pan-European order flow in their respective jurisdictions.

In May this year, the US Commodity Futures Trading Commission and the Australian Securities and Investments Commission expressed their willingness to cooperate in the interest of fulfilling their respective regulatory mandates by signing a memorandum of understanding which will serve toward bringing about a global regulatory collaboration. This is the second commonwealth nation with which the CFTC has shown willingness to cooperate recently, with Canada’s provincial regulators also having entered into an MOU within the past months.

The list of CCPs from which ESMA has gained applications contains a number of entities from North America and Australia, perhaps alluding to the possibility that once the European trade reporting and post-trade processing rules are finalized, more cross-border collaboration may ensue.


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