In the EU, all derivatives based on the reporting commitment under EMIR need to be reported to a registered EU-established TR or a recognised third-country TR. Likewise, CRAs require to have a legal entity signed up in the EU and monitored by ESMA, in order for allow the use of their ratings for regulative purposes in the EU.
In a no-deal Brexit circumstance, TRs and CRAs established in the UK will lose their EU registration since the UK’s withdrawal date.
ESMA has settled all essential activities in preparation for a no-deal Brexit, including the registration of 2 CRAs and two TRs in the EU27.The majority of UK-based CRAs and TRs currently signed up with ESMA have executed contingency strategies in preparation of a no-deal Brexit situation.
ESMA is engaging on a continuous basis with the pertinent monitored entities to make sure that the agreed Brexit contingency plans are fully performed as prepared in case of a no-deal Brexit.