On 25 January 2015 the European Securities and Markets Authority (ESMA) published an updated list of non-EEA Central Counterparties (CCPs) who have applied for recognition under Article 25 of the European Market Infrastructure Regulation (EMIR) (EU No 648/2012) on OTC derivatives, CCPs and trade repositories.
CCPs are entities that sit between counterparties to a derivative contract, becoming the buyer to every seller and the seller to every buyer. This makes CCPs the focal point for derivative transactions and, according to ESMA, this helps in increasing market transparency and reducing the risks inherent in derivatives markets.
The non-EEA CCPs list is not exhaustive because it only includes those who expressly agreed to have their name mentioned publicly and is also subject to further updates.
These non-EEA CCPs include the following:
- ASX Clear (Australia)
- Canadian Derivatives Clearing Corporation (Canada)
- Chicago Mercantile Exchange (USA)
- NASDAQ Dubai (Dubai, UAE)
- Hong Kong Securities Clearing Company (Hong Kong, China)
- National Securities Clearing Corporation (India)
- LCH.Clearnet (USA)
- Tokyo Financial Exchange (Japan)
ESMA also maintains a list of European CCPs under EMIR that are authorised to offer services and activities in the EU (last updated on 22 January 2015). This list can be accessed here.
Effective from 19 December 2014, ESMA and the Hong Kong Securities and Futures Commission (SFC) announced that they entered into a Memorandum of Understanding setting out co-operation arrangements relating to CCPs established in Hong Kong that have applied for recognition under Article 25 of EMIR. It is understood that ESMA and other non-EEA authorities are discussing similar cooperation arrangements.