London, U.K.—FIA President and CEO Walt Lukken today made the following statement regarding reported action by the European Commission to deem UK’s regulatory and legal framework for UK CCPs as equivalent under EMIR for a 12-month period in the event of a no-deal Brexit. FIA believes this is an important step toward ensuring market stability during this uncertain time and continued access to UK CCPs by EU27 firms, and we hope that the other necessary steps for timely recognition of UK CCPs will follow shortly.
“FIA is highly encouraged by the action of the European Commission to grant temporary and conditional equivalence status that will not disrupt these essential markets. Futures, options and swaps are transacted by commercial companies every day to hedge marketplace risks such as price fluctuations in currencies or commodities. Without these vital markets, companies and their customers would have likely seen prices increase and associated market volatility that doesn’t benefit anyone,” said FIA President and CEO Walt Lukken. “FIA personally thanks European Commission’s Vice-President Valdis Dombrovskis for taking an active role in working with the industry to smooth out this otherwise difficult situation.”
FIA, together with other trade associations, had sought greater certainty from European policymakers that a grace period would be extended for continued access to UK CCPs by market participants in the EU27.