On November 23, 2020, the SEC published a Policy Statement and Guidance focused on central counterparties (CCPs) authorized under the European Markets Infrastructure Regulation (EMIR) who may apply to access and operate in the US securities markets. Through the Statement, the SEC provides a look into its processes and emphasizes effective ways that CCPs based in the European Union (EU) may register as a clearing agency or request exemptions from certain requirements under the Securities Exchange Act of 1934.
The SEC has had a well-established working relationship with its European counterparts relative to supervision and enforcement of regulated entities. The SEC recognizes that the European SEC is making strides towards the adoption of an equivalence decision soon regarding the SEC’s system for regulating CCPs.
The Statement offers guidance concerning the following:
- the process for and considerations assumed by the SEC regarding requests for exemptions. Specifically, the Statement recognizes specific factors that the SEC will consider where such factor is relevant to a certain future request for an exemption by an EU CCP.
- the process for registration as a clearing agency, clarifying that EU CCPs can use preexisting materials, including any self-assessments, in their applications to demonstrate compliance with EMIR and consistency with SEC requirements for CCPs.
For more information, contact: Matthew Lee (Assistant Director), Stephanie Park (Senior Special Counsel) or Claire Noakes (Special Counsel) by phone at (202) 551-7000 in the Division of Trading and Markets, US Securities and Exchange Commission, or mail inquiries to:100 F Street, NE, Washington, DC 20549.
The policy statement will be effective following publication in the Federal Register.
Sources:
SEC Issues Statement on European Central Counterparties Seeking to Register or Request Exemptions From the SEC (sec.gov)
Statement on Central Counterparties Authorized under the European Markets Infrastructure Regulation Seeking to Register as a Clearing Agency or to Request Exemptions from Certain Requirements Under the Securities Exchange Act of 1934 (sec.gov)
