Nodal Clear recognised as third-country central counterparty by ESMA
Nodal Clear, the clearing house subsidiary of Nodal Exchange, has been recognised by the European Securities and Markets Authority (ESMA) as a third-country central counterparty (CCP) under the European Markets Infrastructure Regulation (EMIR).
Under European law, third-country CCPs must receive recognition from ESMA to be deemed a Qualifying Central Counterparty (QCCP).
European bank affiliated clearing members may receive favourable capital treatment for their exposures arising from derivatives cleared though a CCP that is considered a QCCP such as Nodal Clear.
“Recognition by ESMA will permit Nodal Clear to continue to provide capital efficient risk management solutions to our clearing and trading community,” says Paul Cusenza (pictured), chairman and CEO of Nodal Clear. “We appreciate the regulators’ efforts in this process and look forward to further participation from European clearing members in our markets.”