The Securities and Exchange Commission (SEC) released a policy statement on 23 November 2020 providing guidance to Central Counterparties (CCPs) which are authorized under the European Markets Infrastructure Regulation (EMIR) to support these EU CCPs in the event that they seek to access and operate in the United States (U.S.) securities markets.
The policy statement aims to provide a transparent overview into the SEC’s processes and also provide the efficient avenues available to EU CCPs which may seek to register as a clearing agency or request exemptions from certain SEC requirements under the SEC Act of 1934. The statement provides guidance in order to comply with SEC rules and also provides a clear method for the preparation of applications to the SEC – ensuring a more efficient processing time and review.
The SEC states: “To provide transparency into SEC processes and to highlight efficient ways that EU CCPs can comply with SEC rules, this policy statement and guidance identifies the information that an EU CCP can provide in its registration application and provides a summary of the factors that the SEC will consider, as applicable, with respect to future requests for exemptions. Specifically, with respect to the registration process, EU CCPs can use preexisting materials, including self-assessments, in their applications to demonstrate compliance with EMIR and consistency with SEC requirements for CCPs. Such materials and self-assessments could facilitate both the EU CCP’s efficient preparation of the application and the SEC’s review of applications for registration.”
The SEC and the European Commission (EC) have had a positive relationship with ongoing dialogue for several years. The SEC is aware of the EC’s engagement on working towards the adoption of an equivalence decision and have gained a significant understanding of the regulation of CCPs under EMIR; in comparison to the SEC’s regulatory framework.
With the statement providing transparent guidance on the registration of clearing agencies and the process for SEC exemption requests, the overall guidance aims to facilitate ongoing dialogue and provide an efficient process in regard to EU CCPs operations in the U.S. securities markets.
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