The following Financial Services practice note provides comprehensive and up to date legal information covering:
This FLASHCARD will help you absorb or recall the core points on the recognition of UK central counterparties (CCPs) under Regulation (EU) 648/2012 (EU EMIR).
Pre-Brexit, three UK CCPs (London Clearing House (LCH), LME Clear and ICE Clear Europe) dominated the market for derivatives clearing services in the EU—it was estimated in June 2017 that UK CCPs cleared approximately 90% of the euro-denominated interest rate swaps of euro area counterparties, and 40% of their euro-denominated credit default swaps.
At the end of the implementation period (31 December 2020), the UK CCPs ceased to be subject to EU supervision and became third country CCPs for the purposes of EU EMIR. Article 25(1) of EU EMIR provides that a CCP established in a third country may not provide clearing services to clearing members or trading venues established in the EEA unless it has been recognised by ESMA.
The conditions for recognition include adoption by the European Commission of an implementing act determining that the legal and supervisory regime for CCPs in the relevant third country is equivalent to the rules in EU EMIR.
On 21 September 2020, the Commission adopted a time-limited equivalence determination in respect of the UK (Commission Implementing
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Multilateral Trading Facilities (MTFs)BREXIT: 11pm (GMT) on 31 December 2020 (‘IP completion day’) marked the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. Following IP completion day, key transitional arrangements come to an end and
Subrogation in insurance and reinsuranceWhat is the right of subrogation?In the context of insurance and reinsurance, the right of subrogation entitles an insurer or reinsurer, having indemnified the (re)insured, to ‘step into its shoes’ to bring an action in the (re)insured’s name. For the purpose
Common financial covenantsThis Practice Note explains certain common financial covenants used in commercial finance transactions including:•minimum net worth test•gearing ratio•leverage ratio (or debt to equity ratio)•current ratio (or acid test ratio)•cashflow ratio•interest cover ratio, and•loan
False imprisonmentLiabilityFalse imprisonment consists of the complete deprivation of liberty without a lawful basis. Claims will in practice be made against a public body that exercises detention powers, usually a local police force, the Secretary of State for the Home Department or the Secretary
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