The European Market Infrastructure Regulation (“EMIR”) was adopted by the European Parliament on 4 July 2012. Under EMIR, ASX Clear (Futures) - as a CCP established outside of the European Union - may only provide clearing services to clearing members established in the European Union if it is recognised as a third country CCP by the European Securities and Markets Authority (“ESMA”).
ASX Clear (Futures) has applied to ESMA for recognition and has transitional relief from the recognition requirement until a decision is made, which is likely to be in 2014.
One of the preconditions for ASX Clear Futures)’ recognition as a third country CCP is that the European Commission must adopt an implementing act determining that the legal and supervisory arrangements of Australia ensure that ASX Clear (Futures) complies with legally binding requirements which are equivalent to those set out in EMIR. ESMA’s advice to the European Commission is that Australia’s arrangements and requirements are equivalent to EMIR.