Friday November 13 2015
News Source: Global Exchanges
Focus: General - Global Exchanges
Type: General
Country: European Union
Link: http://europa.eu/rapid/press-release_IP-15-6075_en.htm?locale=en
The European Commission has determined that five countries (Canada, Switzerland, South Africa, Mexico and the Republic of Korea) have the equivalent regulatory regimes for central counterparties as the European Union.
These decisions follow previous determinations of equivalence made in October 2014 for four other countries (Australia, Singapore, Japan and Hong Kong).
The CCPs in these non-EU countries will be able to obtain recognition in the EU. Market participants will be able to use them to clear standardised over-the-counter derivative trades as required by EU legislation, while the CCPs will remain subject solely to the regulation and supervision of their home jurisdictions. CCPs that have been recognised under the EMIR process will also obtain qualifying CCP (QCCP) status across the European Union under the Capital Requirements Regulation (CRR). This means that EU banks` exposures to these CCPs will be subject to a lower risk weighting in calculating their regulatory capital.
Click on the link above for further details.