French and Italian CCPs Gain Authorization Under EMIR

The European Securities and Markets Authority (ESMA) has added two more clearinghouses—Italy’s Cassa di Compensazione e Garanzia (CC&G) and France’s LCH.Clearnet SA—to its list of central counterparties (CCPs) authorized to offer services in the EU in accordance with the European Markets Infrastructure Regulation (EMIR).
By Jake Safane(2147484770)
The European Securities and Markets Authority (ESMA) has added two more clearinghouses—Italy’s Cassa di Compensazione e Garanzia (CC&G) and France’s LCH.Clearnet SA—to its list of central counterparties (CCPs) authorized to offer services in the EU in accordance with the European Markets Infrastructure Regulation (EMIR).

The Bank of Italy, acting as a National Competent Authority, the authority responsible under EMIR for authorizing and supervising CCPs established in their territory, granted approval to CC&G on May 20. CC&G submitted its CCP application to Bank of Italy on November 25, 2013, and the Bank of Italy’s declared the application complete on November 28, 2013.

On May 20, the same date CC&G gained CCP approval, the Bank of Italy also approved the interoperability arrangement between CC&G and LCH.Clearnet SA, in which the two CCPs gain access to each others’ clearing system, and providing clearing members with a choice in which CCP to use and which CCP their counterparties use.

In France, L’Autorité de Contrôle Prudentiel et de Résolution (ACPR), acting as a National Competent Authority, approved LCH.Clearnet S.A. (LCH.Clearnet Group’s French CCP) as a CCP in accordance with EMIR on May 22, and ACPR also approved the interoperability arrangement with CC&G.

LCH.Clearnet S.A. submitted its application to French regulators on September 15, 2013, and the application was deemed complete on November 27.

LCH.Clearnet says that the authorization confirms that its risk management framework, technology, governance, operating model and capital meet the standards required by EMIR.

“Being authorized as EMIR compliant confirms the high standards of risk and operational management to which we adhere. With this major milestone now achieved we look forward to working collaboratively with our regulators, our members and their clients as we grow our business,” says Christophe Hémon, chief executive of LCH.Clearnet SA.

With the addition of these two clearinghouses as authorized CCPs, ESMA’s list now stands at six, which also includes Sweden’s NASDAQ OMX Clearing, The Netherlands’ European Central Counterparty (EuroCCP), Poland’s KDPW_CCP and Germany’s Eurex Clearing.

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