The European Securities and Markets Authority ("ESMA") adopted decisions to recognize ICE Clear Europe Limited, LCH Limited and LME Clear Limited as third-country central counterparties ("TC-CCPs") beginning on January 1, 2021. The decision will enable the three central counterparties ("CCPs") to provide their services in the European Union after the Brexit transition period ends on December 31, 2020.
Based on its tiering and recognition assessments, ESMA adopted LME Clear Limited as a Tier 1 CCP, and ICE Clear Limited and LCH Limited as Tier 2 CCPs. In accordance with the European Commission's equivalence decision, ESMA's recognition of the three UK CCPs as TC-CCPs under EMIR will remain in effect through June 30, 2022.
In an op-ed in The Wall Street Journal, CFTC Chair Heath Tarbert and European Commission Executive Vice President Valdis Dombrovskis described recent action on regulation and supervision of DCOs.