Atlanta-based Intercontinental Exchange Inc. (ICE) announced on Wednesday that Winnipeg-based ICE Clear Canada Inc. has been recognized as a third-country central counterparty (CCP) under European regulations.
In addition, ICE Clear Canada has been added to the list of approved CCPs by the European Securities and Markets Authority (ESMA).
The regulatory approval follows the European Commission’s assessment that the regulatory regime in Canada is substantially equivalent to Europe’s rules. The ESMA signed a memorandum of understanding (MoU) with regulators in Manitoba, Ontario, Quebec, and Alberta back in January to ensure co-operation in the oversight of CCPs between the various jurisdictions, and allowing them to recognize the equivalency of one another’s regulatory regimes.
See: ESMA, provincial regulators sign co-op agreements on central counterparties
“With a significant amount of business on our Canadian markets originating in Europe, we’re pleased to receive EMIR recognition by the European Securities and Markets Authority, allowing ICE Clear Canada to provide clearing services to European firms,” says Brad Vannan, president and COO of ICE Clear Canada and ICE Futures Canada, in a statement.
“This provides an additional assurance to our European customers and enhances their confidence in our Canadian agricultural market, which includes our global benchmark canola contract,” he adds.