# The Central Counterparties (Amendment, etc., and Transitional Provision) (EU Exit) Regulations 2018, Regulation 19: Cessation of temporary deemed recognition

Extent: E+W+S+N.I.

(1) A central counterparty is, on or after IP completion day, to cease to be taken to be recognised pursuant to Article 25 of the EMIR Regulation in accordance with regulation 17 where any of the following conditions are met.
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4) The first condition is that the Bank of England directs that the central counterparty is to cease to be taken to be recognised pursuant to Article 25 of the EMIR Regulation in accordance with regulation 17.
(5) The second condition is that, in the case of a central counterparty who has submitted an application under regulation 12 or Article 25.4 of the EMIR Regulation—
(a) the central counterparty withdraws their application; or
(b) the application is determined by the Bank of England.
(6) The third condition is that, in the case of a central counterparty which has not submitted an application under regulation 12, the period of 18 months beginning with IP completion day expires without the central counterparty having submitted an application under Article 25.4 of the EMIR Regulation during that period.
(7) A direction may only be given under paragraph (4) where—
(a) the Bank of England considers that there would otherwise be an adverse effect on financial stability in the United Kingdom;
(b) the central counterparty has not made use of the recognition within the period of twelve months beginning with IP completion day, has expressly renounced the recognition or has provided no services or performed no activity for the preceding six months; or
(c) in the case of a central counterparty who has submitted an application under regulation 12 or Article 25.4 of the EMIR Regulation, the central counterparty has made false statements in relation to the application or has sought to obtain recognition by any other irregular means.

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Source: https://www.legislation.gov.uk/uksi/2018/1184/regulation/19 (the official version)
Page: https://openlegislation.uk/central-counterparties-amendment-etc-and-transitional-provision-eu-exit-regulations-2018/regulation-19
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.