ESMA agrees no-deal Brexit MOUs with the Bank of England for recognition of UK CCPs and the UK CSD (Esma Press Release 4th February 2019)

The European Authority for Financial Instruments and Markets (Esma) and the Bank of England have defined through special agreements (Memoranda of understandings-MOUs) the framework for recognition of Central counterparty clearing house (Ccp) and Central securities depository (Csd) ) of the United Kingdom in case of a no-deal Brexit.

The definition of MOUs should contribute to financial stability in the European Union and should allow the Csd in the United Kingdom to continue offering Irish stocks without negative consequences on the reference market. The MOUs will furthermore define the conditions for a timely recognition of both the central counterparties and of the British central depository, making reference to Emir rules (article 25) and Csdr rules (article 25) as well as to mutual cooperation agreements defined between the European Union and the United Kingdom.

In the event of a no-deal Brexit, the agreements defined in the MOUs will enter into force the day after the exit of the United Kingdom from the European Union.

 Download Esma Press Release 4th February 2019