Capital Markets Union: Commission extends time-limited equivalence for UK central counterparties and launches consultation to expand central clearing activities in the EU

The European Commission has adopted a decision to extend equivalence for UK central counterparties (CCPs) until 30 June 2025. This decision will ensure the European Union's financial stability in the short-term. In addition, the Commission has also launched today a targeted public consultation and a call for evidence on ways to expand central clearing activities in the EU and improve the attractiveness of EU CCPs in order to reduce the EU's overreliance on systemic third-country CCPs. The aim of this consultation is also to seek stakeholders' views on changes to supervisory arrangements for EU CCPs. More attractive, and better supervised, EU CCPs will enhance the benefits of the Single Market for EU financial market participants and EU businesses. Financial Stability, Financial Services and Capital Markets Union Commissioner Mairead McGuinness said: “Ensuring financial stability and further developing the Capital Markets Union are our key priorities. Central clearing parties (CCPs) play an important role in mitigating risk in the financial system. The Commission plans to come forward with measures to reduce our excessive dependence on systemic third-country CCPs, and to improve the attractiveness of EU-based CCPs while enhancing their supervision. We call upon all relevant stakeholders to engage in the consultation being launched today.” Today's decision follows the statement of the Commissioner on 10 November 2021 proposing an extension. This proposed way forward strikes a balance between preserving EU financial stability in the short term and building a strong and competitive Capital Markets Union in the coming years. More information is available in our press release.

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