The Bank of England (‘the Bank’) has issued a Statement of Policy setting out the Bank’s approach to granting comparable compliance to certain non-UK central counterparties (‘incoming CCPs’) recognised to provide clearing services to clearing members or trading venues established in the UK.
The Bank has also issued a Policy Statement containing feedback to the responses relating to the recent Consultation Paper on this policy which ran from November 8 2021 to February 25 2022.
This Statement of Policy is relevant to recognised incoming CCPs that have been designated as Tier 2 by the Bank in accordance with Article 25(2a) of EMIR and to Tier 2 CCPs’ relevant home authorities. It should be read alongside the Bank’s approach to tiering incoming central counterparties under EMIR Article 25.
Under EMIR Article 25a(1), a Tier 2 incoming CCP (‘requesting CCP’) may submit a reasoned request that the Bank assesses whether in its compliance with the applicable home regime and taking into account the provisions of the regulations made under EMIR Article 25(6), a CCP may be deemed to satisfy compliance with certain EMIR requirements (Article 16, Title IV and Title V). The purpose of this Statement of Policy is to set out the Bank’s approach on how it will assess such a request.
The Bank will grant comparable compliance to requesting CCPs for specific areas where the Bank considers equal or comparable supervisory outcomes are achieved through the home regimes. Where comparable compliance has been granted, the Bank will defer to home authorities and will not expect to engage in independent direct regulation or supervision of those specific areas, and consequently reduce the administrative and regulatory burden on requesting CCPs.
The implementation date if this policy will be Thursday 1 December 2022.
Policy Statement: The Bank of England's approach to comparable compliance under EMIR Article 25a
Statement of Policy: The Bank of England's approach to comparable compliance under EMIR Article 25a