Brexit: ESMA withdraws registration of four UK-based TRs
04 January 2021 France
Image: ktsdesign/Adobe Stock
The European Securities and Markets Authority (ESMA) has withdrawn the registrations of four UK-based trade repositories (TRs) and six UK credit rating agencies (CRAs), following the end of the Brexit transition period.
The CRA Regulation, the European Market Infrastructure Regulation (EMIR), and the Securities Financing Transactions Regulation (SFTR), require ESMA to withdraw the registration of a firm where it no longer meets the conditions under which it was registered.
ESMA explained this includes being a legal person established in the EU.
The UK-based TRs that have been withdrawn include DTCC Derivatives Repository, UnaVista, CME Trade Repository, ICE Trade Vault Europe.
As a result of these withdrawal decisions, EU derivatives and securities financing transactions subject to the reporting obligation under EMIR and SFTR can no longer be reported to any of the TRs listed above.
ESMA added that instead EU derivatives and securities financing transactions need to be reported to an EU established TR. An updated list of the available TRs is included on ESMA’s webpage.
Meanwhile, the UK CRAs to have been withdrawn are: AM Best Europe-Rating Services, DBRS Ratings, Fitch Ratings, Fitch Ratings CIS, Moody’s Investors Service, and The Economist Intelligence Unit.
According to the authority, credit ratings will need to be endorsed for EU use. The ratings issued by the above mentioned CRAs cannot be used for regulatory purposes in the EU unless endorsed by an EU CRA.
ESMA, in a previous communication on 27 October 2020, confirmed that all UK-based CRAs except the Economist Intelligence Unit took steps to ensure that an EU CRA is willing and able to endorse its credit ratings.
The CRA Regulation, the European Market Infrastructure Regulation (EMIR), and the Securities Financing Transactions Regulation (SFTR), require ESMA to withdraw the registration of a firm where it no longer meets the conditions under which it was registered.
ESMA explained this includes being a legal person established in the EU.
The UK-based TRs that have been withdrawn include DTCC Derivatives Repository, UnaVista, CME Trade Repository, ICE Trade Vault Europe.
As a result of these withdrawal decisions, EU derivatives and securities financing transactions subject to the reporting obligation under EMIR and SFTR can no longer be reported to any of the TRs listed above.
ESMA added that instead EU derivatives and securities financing transactions need to be reported to an EU established TR. An updated list of the available TRs is included on ESMA’s webpage.
Meanwhile, the UK CRAs to have been withdrawn are: AM Best Europe-Rating Services, DBRS Ratings, Fitch Ratings, Fitch Ratings CIS, Moody’s Investors Service, and The Economist Intelligence Unit.
According to the authority, credit ratings will need to be endorsed for EU use. The ratings issued by the above mentioned CRAs cannot be used for regulatory purposes in the EU unless endorsed by an EU CRA.
ESMA, in a previous communication on 27 October 2020, confirmed that all UK-based CRAs except the Economist Intelligence Unit took steps to ensure that an EU CRA is willing and able to endorse its credit ratings.
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