Treasury has published the outcome of its call for evidence on Recognised Clearing Houses (RCH). Treasury needs to consider how to apply UK legislation to the current RCH once each entity has completed any necessary authorisation applications to ESMA for authorisation under the European Market Infrastructure Regulation (EMIR) as central counterparties (CCPs). Treasury sought views on entities that carry out clearing activities that would not be CCPs, and views on how it should regulate them. It also sought views on whether Central Securities Depositories (CSDs) should be treated as RCH. As a result of the responses to the call for evidence, Treasury will:
- consider further the activities of Model B clearers, and risk management companies providing margining and netting solutions, as responses indicated differing views on the regulatory analysis of what these entities do; and
- take forward the suggestion of a new recognised body status for CSDs (an RCSD). It will do this as part of its forthcoming consultation on implementing the CSD Regulation domestically.