European Market Infrastructure Regulation Authorisation of central counterparties (CCPs) and recognition of third-country CCPs

EU’s exposure to third-country CCP risks will also be exacerbated by the withdrawal of the UK from the EU in 2019, as this will lead to a shift of risk from within to outside the EU’. (IA, p. 33 and elsewhere). Both issues are substantiated with evidence. For instance, and convincingly, the IA relates that around 75 % of centrally-cleared interest rate derivatives denominated in euros is cleared in the UK (IA, p. 18 and 48). The UK is also home to 4 out of 17 EU CCPs, more than any other Member State (IA, pp. 80-81). As far as the growing systemic importance of central clearing is concerned, the IA provides evidence that the volume of CCP activity — in the EU and globally — has grown rapidly. For instance, centrally cleared transactions have almost doubled in the interest rate OTC derivatives segment, from about 36 % at the end of 2009 to about 60 % at the end of 2015 (IA, p. 7).

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