Asked by: Lauren Edwards (Labour - Rochester and Strood)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 25 November 2024 to Question 13971 on Financial Services: Euro, what steps her Department is taking to mitigate against the risk of the EU not extending its equivalence decision for UK central counterparties after June 2025.
Answered by Tulip Siddiq - Economic Secretary (HM Treasury)
As set out in my previous response, it is a decision for EU authorities whether to extend further the Article 25 EMIR decision for UK CCPs. As the Bank of England has noted previously, there are financial stability risks which might arise from EU firms having to exit from UK CCPs at pace. HM Treasury, alongside the financial services regulators, will therefore continue to monitor the situation.
Asked by: Lauren Edwards (Labour - Rochester and Strood)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions she has had with her European Union counterparts on the future of EU denominated clearing in the UK beyond June 2025.
Answered by Tulip Siddiq - Economic Secretary (HM Treasury)
The EU took the decision in early 2022 to extend its equivalence decision for UK central counterparties, made under Article 25 of the European Market Infrastructure Regulation, until June 2025. Equivalence decisions are made on a unilateral basis by EU authorities and it is therefore a decision for EU authorities on whether this is extended. The UK Government is committed to maintain and strengthen our high standards for CCP regulation.