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Commission extends time-limited equivalence for UK central counterparties

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The European Commission has adopted a decision to extend the equivalence for UK central counterparties (CCPs) for a period of three years, until 30 June 2028. This decision will ensure EU financial stability in the short-term and provide clarity to EU financial market participants.

This extension is designed to provide time for the implementation of the European Market Infrastructure Regulation (EMIR 3). EMIR 3 contains measures that will improve the attractiveness and competitiveness of EU clearing markets. This will help reduce the EU's overreliance on systemically important UK CCPs, thus reducing risks to EU financial stability in the medium term.

Financial Services and the Saving and Investment Union Commissioner Maria Luis Albuquerque (pictured) said: “Central clearing is vital for well-functioning EU capital markets. With this extension of equivalence for UK CCPs we are safeguarding EU financial stability and avoiding short-term risks. At the same time, we remain committed to reducing our over-reliance on UK CCPs thus reducing risks to our financial system. This 3-year extension will allow the recently agreed EMIR 3 measures to start taking effect, increasing clearing in the EU and reducing our exposure to UK CCPs.” 

The decision has been published in the Official Journal of the EU. It will enter into force immediately and apply from 1 July 2025, leaving no gap or uncertainty for EU market participants.

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