ESMA recognises four new Third Country CCPs

On 2 May 2023, ESMA published an updated list of third-country CCPs which are recognized to offer clearing services and perform activities in the European Union in accordance with Article 25 of EMIR. The list also includes a table of classes of financial instruments by each counterparty which are covered by the CCP’s recognition.
In the last 6 months, ESMA recognized four additional TC-CCPs, bringing the total number of recognized TC-CCPs to 39. The newly recognized TC-CCPs are Bursa Malaysia Derivatives Clearing Berhad (Malaysia), Taiwan Futures Exchange Corporation (Taiwan), Cámara de Riesgo Central de Contraparte de Colombia S.A. (Colombia), and Tel-Aviv Stock Exchange Clearing House Ltd (Israel). These TC-CCPs were recognized after standard MoUs were concluded between ESMA and their respective supervisory authorities.
ESMA has also withdrawn recognition of six TC-CCPs established in India, effective 30 April 2023. The withdrawn TC-CCPs are the Clearing Corporation of India (CCIL), Indian Clearing Corporation Limited (ICCL), NSE Clearing Limited (NSCCL), Multi Commodity Exchange Clearing (MCXCCL), India International Clearing Corporation (IFSC) Limited (IICC), and NSE IFSC Clearing Corporation Ltd (NICCL). These withdrawals were likely due to supervisory or regulatory issues with the respective Indian authorities.
ESMA now has 25 cooperation arrangements for TC-CCP supervision with supervisory authorities from 20 third countries. This means that ESMA works closely with these third-country authorities to ensure that TC-CCPs operating in the EU meet the same regulatory and supervisory standards as those in the EU. By recognizing TC-CCPs and establishing cooperation arrangements, ESMA aims to enhance the safety and efficiency of the EU financial markets.