ESMA recognises CDSC as Tier 1 CCP
13 August 2024 Canada
Image: mbruxelle/stock.adobe.com
The European Íø±¬³Ô¹Ï and Markets Authority (ESMA) has recognised Canada's national securities depository as a third-country central counterparty (CCP) under the European Markets Infrastructure Regulation (EMIR).
On 8 August, CDS Clearing and Depositary Services (CDSC) became a Tier 1 CCP under Article 25 of EMIR.
The move follows an equivalence decision regarding the regulatory framework for central CCPs established in parts of Canada, including British Columbia, which was adopted in November 2015.
The authority’s recognition of CDSC was made possible through the signature of the Memorandum of Understanding (MoU) between ESMA and the British Columbia Íø±¬³Ô¹Ï Commission (BCSC) on 18 July.
The MoU establishes cooperation arrangements, including the exchange of information, regarding CCPs which are established in Canada and authorised or recognised by the BCSC, and which have applied for EU recognition under EMIR.
The new agreement complements ESMA’s MoU with the Ontario Íø±¬³Ô¹Ï Committee and the Autorité des Marchés Financiers of Québec, according to ESMA.
With this MoU, ESMA has concluded 26 cooperation arrangements under EMIR with relevant non-EU supervisory authorities from 21 countries across all continents, including the US, UK, and New Zealand.
EMIR provides for cooperation arrangements between ESMA and the relevant non-EU authorities whose legal and supervisory framework for CCPs has been deemed equivalent to EMIR by the European Commission.
On 8 August, CDS Clearing and Depositary Services (CDSC) became a Tier 1 CCP under Article 25 of EMIR.
The move follows an equivalence decision regarding the regulatory framework for central CCPs established in parts of Canada, including British Columbia, which was adopted in November 2015.
The authority’s recognition of CDSC was made possible through the signature of the Memorandum of Understanding (MoU) between ESMA and the British Columbia Íø±¬³Ô¹Ï Commission (BCSC) on 18 July.
The MoU establishes cooperation arrangements, including the exchange of information, regarding CCPs which are established in Canada and authorised or recognised by the BCSC, and which have applied for EU recognition under EMIR.
The new agreement complements ESMA’s MoU with the Ontario Íø±¬³Ô¹Ï Committee and the Autorité des Marchés Financiers of Québec, according to ESMA.
With this MoU, ESMA has concluded 26 cooperation arrangements under EMIR with relevant non-EU supervisory authorities from 21 countries across all continents, including the US, UK, and New Zealand.
EMIR provides for cooperation arrangements between ESMA and the relevant non-EU authorities whose legal and supervisory framework for CCPs has been deemed equivalent to EMIR by the European Commission.
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