Clearing away after Brexit?
18 Pages Posted: 27 Oct 2021
There are 2 versions of this paper
Clearing away after Brexit?
Date Written: June 11, 2020
Abstract
A new legal framework for the regulation of non-European Union (non-EU) central counterparties (CCPs) operating in the EU came into force in 2020, which empowers the European Securities and Markets Authority (ESMA) in a supervisory role and allows it to recommend the relocation of systemically important CCPs. Brexit will require reclassification of the systemically important CCPs of the United Kingdom. This paper analyzes, from a legal perspective, the new framework, the roles and responsibilities of the European Central Bank, ESMA and the European Commission, and the possible outcomes for UK CCPs once Brexit is complete.
Keywords: clearing; systemically important central counterparties (CCPs); European Central Bank; relocation; Brexit.
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