Irrespective of whether negotiators and lawmakers manage to hammer out a Brexit deal, the European Securities and Markets Authority (ESMA) wants no disruption to central clearing.
On Friday, in a significant development, the European Securities and Markets Authority (ESMA) stated, it supports the idea of continued access to British clearing houses for derivatives transactions in the case of a no-Brexit. This significantly reduces the risk of disruption in central clearing in case of a cliff hanger Brexit scenario.
“The ESMA Board of Supervisors supports the continued access to UK CCPs (central counterparties) …to avoid negatively impacting EU financial market stability,” said ESMA in a statement.
The regulator made these comments while addressing risks posed by Brexit to to central clearing houses. It went on to add, the European Commission should ensure that there is no disruption to central clearing.