As the European directive toward ensuring electronic trading infrastructure is adapted to meet the forthcoming regulations under the European Market Infrastructure Regulation (EMIR) advances, the continental financial markets regulator, European Securities and Markets Authority (ESMA) has added Holland Clearing House BV to its list of approved central counterparties (CCP).
EMIR requires EU-based CCPs to be registered and non-EU CCPs to be recognised in the European Union (EU), and follows the lead which was established last year in North America by the Commodity Futures Trading Commission in that all over the counter trades must be conducted via a central counterparty in order that regulatory and compliance inspections can be conducted with regard to pricing.
Prior to approving Holland Clearing House BV, ESMA had granted regulatory approval for fourteen other European CCPs, the full list, including Holland Clearing House, can be viewed here.
The approval by ESMA comes just a matter of two weeks after North American multinational network of electronic exchanges and clearing houses IntercontinentalExchange (NYSE:ICE) purchased a majority stake in Holland Clearing House BV.
This could be considered a shrewd move for the European expansion of ICE, especially bearing in mind the recent consultation within the Financial Conduct Authority (FCA) in the UK last week, in which the British regulator is reiterating the responsibilities of MTFs via a thematic review of their rule books. Bearing this in mind, it is interesting that ICE chose to acquire a firm based in Holland for its European MTF operations rather than in the financial heartlands of London alongside its ICE Clear Europe operations.
Indeed, with Holland Clearing House having gained pan-European CCP status, its remit is likely to be expanded even further.
For the full announcement regarding Holland Clearing House BV’s approval by ESMA, click here.