London, UK—FIA President and CEO Walt Lukken today issued the following statement after ESMA published its conclusions from its assessment of the systemic importance of Tier 2 CCPs established in the UK.
"FIA welcomes ESMA’s conclusions that it will not recommend to the European Commission to derecognise the clearing services provided by LCH Ltd and ICE Clear Europe Ltd or their services at this time following its comprehensive assessment of the systemic importance of Tier 2 UK CCPs under EMIR Art 25(2c).
The decision ensures continued access for EU clients to the global liquidity pools at both UK CCPs, safeguards financial stability and prevents market disruption. Central clearing enhances the safety and soundness of the financial system and ensures that commercial companies can hedge marketplace risk, especially in these volatile times.
FIA will analyse the report’s proposed risk mitigation measures and stands ready to work with ESMA and other regulatory authorities on measures to further enhance the stability of the financial system and promote the growth of competitive, efficient and safe markets globally."