Regulation 19 Cessation of temporary deemed recognition

(1)

A central counterparty is, on or after exit 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)

The first condition is that the central counterparty ceases to be—

(a)

authorised in accordance with Article 17 of the EMIR Regulation;

(b)

recognised in accordance with Article 25 of the EMIR Regulation; or

(c)

a central counterparty to which Article 89.4 of the EMIR Regulation applies, unless that central counterparty has been subsequently recognised in accordance with Article 25 of the EMIR Regulation.

(3)

In paragraph (2), references to the “EMIR Regulation” are to be read as references to that regulation as it has effect in EU law as amended from time to time.

(4)

The second 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 third 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 fourth condition is that, in the case of a central counterparty which has not submitted an application under regulation 12, the period of 6 months beginning with exit 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 exit 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.