The European Securities and Markets Authority (ESMA) has confirmed that, in the event of a no-deal Brexit, the Central Securities Depository (CSD) established in the United Kingdom (UK) – Euroclear UK and Ireland Limited – will be recognized as a third country CSD to provide its services in the European Union.
ESMA said it had adopted this recognition decision in order to allow the UK CSD to serve Irish securities and to avoid any negative impact on the Irish securities market. ESMA has previously communicated that its Board of Supervisors supported continued access to the UK CSD.
After assessing the application and the information submitted by the UK CSD, and consulting the relevant authorities in accordance with the Central Securities Depositories Regulation (CSDR), ESMA said it considers that the conditions for recognition under Articles 25 of CSDR are met by the UK CSD in case of a no-deal Brexit. Therefore, it has adopted a decision to recognise the UK CSD as a third-country CSD under the CSDR.
ESMA said the recognition decision would take effect on the date following Brexit date, under a no-deal Brexit scenario.