Brexit: ESMA Recognizes UK-Based Euroclear as Securities Depository

The European Securities and Markets Authority (ESMA ESMA European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t Read this Term) has announced on Friday that it will recognize Euroclear UK & Ireland Limited (EUI) as a third-country central securities depository (TC-CSD) after the expiry of the Brexit transition period.

This recognition came along with the European market regulator’s previous decision to allow the operation of United Kingdom-based depositories in the European Union for a limited time in case of a no-deal exit of the UK from the bloc.

The decision will kick-off on January 1, 2021, and will last for six months until the held securities are transferred to Europe-based platforms.

To allow the UK CDS’ operation into the bloc after the transition period, ESMA signed a memorandum of understanding (MoU) with the Bank of England to establish cooperation arrangements for the recognition and supervision.

Uncertainties with Looming Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term

The Brexit transition is dated to expire on December 31, 2020, and no positive news about a deal between the two parties is coming out. This uncertainty prompted the financial markets regulators of the UK and Europe to come up with plans to facilitate operations of the closely connected industries in the two regions.

Earlier, the European regulator decided to allow three UK-based central counterparties (CCPs) - ICE Clear Europe Limited, LCH Limited, and LME Clear Limited - to operate in the continent.

Furthermore, regulators of both sides are colliding on a few issues as they are coming up with some stark differences in decisions. Earlier, the EU regulator restricted the European companies from executing stock trading within the bloc, with some exceptions, post-Brexit. However, the FCA allowed the British companies to approach European exchanges for share trading.