The European Supervisory Authorities’ (ESAs) Joint Board of Appeal has actually verified the choice of the European Securities and Markets Authority (ESMA) to withdraw the acknowledgment of Dubai Commodities Clearing Corporation (DCCC).
The withdrawal originates from the European Commission’s addition of the United Arab Emirates (UAE) on the list of high-risk 3rd nations with shortages in their anti-money laundering and counter-financing of terrorism policies.
Effect of the Decision
The choice to withdraw acknowledgment impacts DCCC’s status as a Tier 1 third-country main counterparty (CCP). It followed an appeal brought by DCCC versus ESMA’s withdrawal.
With the Joint Board of Appeal’s consentaneous termination of DCCC’s appeal, ESMA’s withdrawal choice has actually ended up being totally functional. Regardless of DCCC’s efforts, the suspension of ESMA’s choice, which was started in October 2023, pending the appeal result, has actually ended.
For DCCC, the verification of withdrawal requires tactical reassessment and prospective modifications to line up with EU regulative requirements.
Future Considerations
The regulator pointed out that as the regulative landscape progresses, entities running as CCPs and third-country entities should stay alert in resolving compliance commitments to alleviate regulative threats and guarantee ongoing market gain access to.
The European Supervisory Authorities’ (ESAs) Joint Board of Appeal has actually verified the choice of the European Securities and Markets Authority (ESMA) to withdraw the acknowledgment of Dubai Commodities Clearing Corporation (DCCC).
The withdrawal originates from the European Commission’s addition of the United Arab Emirates (UAE) on the list of high-risk 3rd nations with shortages in their anti-money laundering and counter-financing of terrorism policies.
Effect of the Decision
The choice to withdraw acknowledgment impacts DCCC’s status as a Tier 1 third-country main counterparty (CCP). It followed an appeal brought by DCCC versus ESMA’s withdrawal.
With the Joint Board of Appeal’s consentaneous termination of DCCC’s appeal, ESMA’s withdrawal choice has actually ended up being completely functional. Regardless of DCCC’s efforts, the suspension of ESMA’s choice, which was started in October 2023, pending the appeal result, has actually ended.
For DCCC, the verification of withdrawal demands tactical reassessment and prospective modifications to line up with EU regulative requirements.
Future Considerations
The regulator pointed out that as the regulative landscape progresses, entities running as CCPs and third-country entities should stay alert in dealing with compliance responsibilities to alleviate regulative dangers and make sure ongoing market gain access to.