The European Securities and Market Authority ("ESMA") is working with the European Commission to plan "preparatory actions for the recognition process of UK [central counterparty clearing houses]" ("CCPs") in the event of a "no-deal" situation.
In a public statement, ESMA highlighted the European Commission Contingency Action Plan (the "Action Plan") published on November 13, 2018 which addressed financial stability risks in the European Union arising from UK withdrawal without any agreement. ESMA emphasized that in the event of a UK withdrawal without an agreement, the European Commission plans to adopt a "temporary and conditional equivalence decision" to ensure that central clearing will not be disrupted. According to ESMA, the goal is to make sure there is continued access to UK CCPs for EU clearing members and trading venues, as of March 30, 2019, "should all the conditions in [European Market Infrastructure Regulation] . . . be fulfilled."
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