INTERNATIONAL: ESMA Recognise Central Counterparty Qualification Process

Friday April 7 2017

European Securities and Markets Authority ESMA decided on March 29, 2017 to recognise the clearinghouses managed by BM&FBOVESPA (BM&FBOVESPA Clearinghouses), in the condition of a third-country central counterparty (TC CCP) in relation to the European Union, in accordance with the application submitted to ESMA on September 11, 2013.

The recognition entails the definitive classification of the BM&FBOVESPA Clearinghouses as qualifying central counterparties (QCCP), for the purposes of the capital requirements applicable to European financial institutions pursuant to the provisions of Regulation (EU) 575/2013 of the European Parliament and of the Council on Prudential Requirements for Credit Institutions and Investment Firms and Amending Regulation.

The qualification of the BM&FBOVESPA Clearinghouses as QCCP is a major milestone for the strengthening and development of the Brazilian financial and capital markets as it allows foreign institutions linked to BM&FBOVESPA participants to operate in the Brazilian market through their national subsidiaries with greater efficiency as regards applicable capital allocation requirements.

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