On 1 March 2019, the European Securities and Markets Authority (ESMA) announced that it will recognise Euroclear UK and Ireland Limited (Euroclear) as a third country Central Securities Depository (CSD), in the event of a no-deal Brexit (Recognition Decision). Euroclear, which is the CSD in the UK, also services Irish securities. The Recognition Decision will allow Euroclear to continue offering its services in the EU and will help avoid disruption for the Irish securities market.

This follows the European Commission’s decision of 19 December 2018, which recognised the UK regulatory regime applicable to CSDs as equivalent, in accordance with the Central Securities Depositories Regulation (CSDR), for a limited period of time.

The Recognition Decision will take effect on the following day after the UK’s withdrawal from the EU, if there is a no-deal Brexit.