Financial services: Commission adopts equivalence decision for US central counterparties

The European Commission today adopted an equivalence decision determining that the United States Securities and Exchange Commission (SEC) regime for US central counterparties (CCPs) is equivalent to EU rules. Today’s decision is an important first step for US CCPs registered with the SEC to be recognised in the European Union. It will allow such US CCPs to apply for recognition by the European Securities and Markets Authority (ESMA). Once recognised by ESMA, these US CCPs will be able to provide central clearing services in the EU. Mairead McGuinness, Commissioner responsible for Financial Services, Financial Stability and the Capital Markets Union, said: “This decision is a significant first step in the process of recognising US CCPs registered with the US Securities and Exchange Commission in the European Union. We look forward to continued good cooperation between EU institutions and agencies, and the US Securities and Exchange Commission.” Today’s decision complements the existing equivalence decision for US CCPs regarding the US Commodity Futures Trading Commission (CFTC), which was adopted in 2016 (more information here).