ESMA to recognise the UK CSD in case of no-deal Brexit

ESMA announced the 1th of March 2019 that, in a case of a no-deal Brexit scenario, the CSDs established in the UK, Euroclear UK and Ireland Limited, will be recognised as a third country CSDs to provide their services in the European Union (EU). This decision has been taken in order to allow the UK CSD to keep serving Irish securities and to avoid any negative impact on the Irish securities market. ESMA has also released its consideration about the UK CSD and its compliance with the CSDR: the Articles 25 conditions of CSDR are met by the UK CSD in the eventuality of a no-deal Brexit. According to this, it has been adopted a decision to recognise the UK CSD as a third-country CSD under the CSDR. The recognition of the decision would eventually come into effect on the date following a no-deal Brexit.

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