PART 6Transitional provisions
Eligibility for temporary deemed recognition17
1
This regulation applies to a central counterparty established in a third country (‘A’) if—
a
immediately before F1IP completion day the central counterparty is—
i
authorised in accordance with Article 17 of the EMIR Regulation as it then has effect;
ii
recognised in accordance with Article 25 of the EMIR Regulation as it then has effect; or
iii
a central counterparty to which Article 89.4 of the EMIR Regulation as it then has effect applies;
b
the central counterparty has notified the Bank of England in accordance with paragraph (2) that it intends to provide clearing services as a central counterparty in the United Kingdom on and after F1IP completion day; and
c
where the central counterparty has submitted an application under regulation 12, that application has not been determined by the Bank of England.
2
For the purposes of paragraph (1)(b), the notification must—
a
be made before F1IP completion day,
b
be made in such manner as the Bank of England may direct, and
c
contain, or be accompanied by, such information as the Bank of England may direct.
3
The Bank of England must confirm promptly receipt of the notification to the person making it.
4
During the temporary recognition period determined under regulation 18, A is to be taken to be recognised by the Bank of England pursuant to Article 25 of the EMIR Regulation in respect of the services, activities and classes of financial instrument mentioned in paragraph (5) F4, and (5A).
5
The services, activities and classes of financial instrument in respect of which A is to be taken to be recognised are those which meet the following conditions—
a
the first condition is that the service, activity and class of financial instrument is one which immediately before F1IP completion day A is—
i
authorised to provide or perform under Article 17 of the EMIR Regulation as it then has effect;
ii
recognised to provide or perform under Article 25 of the EMIR Regulation as it then has effect; or
iii
in the case of a central counterparty to which Article 89.4 of the EMIR Regulation as it then has effect applies, authorised or recognised to provide or perform in a member State in accordance with that Article; and
b
the second condition is that where A has submitted an application under regulation 12, the service, activity or class of financial instrument is specified in A's application.
F35A
A is also to be taken to be recognised in respect of other services, activities or classes of financial instrument which meet the following conditions—
a
the service, activity or class of financial instrument is one which A is authorised or permitted to provide in the country in which A is established, in accordance with a system of laws or rules applicable to A that is administered by the appropriate regulator in the country concerned;
b
the service, activity or class of financial instrument—
i
has been notified by A to the Bank of England in accordance with paragraph (5B) as a service, activity or class of financial instrument which A intends to provide to—
aa
clearing members, or
bb
trading venues within the meaning of Article 2 of the EMIR Regulation,
that are established in the United Kingdom, and
ii
where so notified by A, is one which A intends to provide in addition to services, activities or classes of financial instrument mentioned in paragraph (5) in respect of which A is taken to be recognised by the Bank of England.
5B
For the purposes of paragraph (5A), the notification must—
a
be made in such manner as the Bank of England may direct, and
b
contain, or be accompanied by, such information as the Bank of England may direct.
5C
The Bank of England must confirm promptly receipt of the notification to the person making it.
6
The Bank of England must publish on its website a list of central counterparties that are taken to be recognised by the Bank of England pursuant to Article 25 of the EMIR Regulation by virtue of this regulation.
7
F2Article 25p of the EMIR Regulation does not apply to a central counterparty which is taken to be recognised by the Bank of England pursuant to Article 25 of the EMIR Regulation by virtue of this regulation.