IOSCO writes to Commission on CCP recognition: IOSCO's Asia-Pacific Regional Committee has written to the Commission on equivalence assessments for the recognition of non-EU central counterparties (CCPs) under EMIR, noting that:
- Asia-Pacific jurisdictions have based their regulation of CCPs on the international standards set by the Principles for Financial Market Infrastructures;
- equivalence assessments should be conducted by reference to outcomes;
- internationally-consistent solutions should be found to bridge any differences between EU and non-EU CCPs;
- there is a risk that conditions imposed for recognition may not be relevant for a non-EU CCP. Non-EU CCPs may not operate in the EU markets and may only serve EU institutions in respect of their operations in the CCPs' domestic markets. Conditions that are not relevant to them would have the effect of reducing the service, or increasing its cost, to EU institutions in the Asia-Pacific region; and
- the Commission should adopt an implementing act to extend the transitional relief from the new capital requirements legislation by a further six months, so that non-EU CCPs continue to qualify as qualifying CCPs while they are still waiting for recognition under EMIR.