The Commission and the US Commodity Futures Trading Commission (CFTC) have agreed and announced a common approach on the equivalence of Central Counterparty (CCP) regimes. Both will work to take the necessary steps to implement the agreement as soon as possible. For the EU, the Commission will need to adopt an equivalence decision for the CFTC’s regime. Prior to this, EU Member State authorities must vote on the proposal through the European Securities Committee.
The CFTC will need to finalise a substituted compliance regime for EU CCPs. ESMA says it will now resume the recognition process of certain CFTC-recognised CCPs that had already applied for EU recognition. It notes that the European Market Infrastructure Regulation (EMIR) gives it 180 days to conclude its recognition, but says it will do all it can to work to shorter deadlines. It cannot promise to have completed assessments by the 21 June deadline when the clearing obligation starts. ESMA will also work on amendments to its Regulatory Technical Standards (RTS) on minimum risk periods for different types of clearing accounts. (Source: Commission and CFTC Agree Common Approach on CCP and ESMA Welcomes CCP Equivalence Agreement)