The European Supervisory Authorities’ (ESAs) Joint
Board of Attraction has confirmed the choice of the European Securities and
Markets Authority (ESMA) to withdraw the popularity of Dubai Commodities
Clearing Company (DCCC).
The withdrawal stems from the European Fee’s
inclusion of the United Arab Emirates (UAE) on the record of high-risk third
international locations with deficiencies of their anti-money laundering and
counter-financing of terrorism rules.
The choice to withdraw recognition impacts DCCC’s
standing as a Tier 1 third-country central counterparty (CCP). It adopted an
attraction introduced by DCCC in opposition to ESMA’s withdrawal.
With the Joint Board of Attraction’s unanimous dismissal
of DCCC’s attraction, ESMA’s withdrawal choice has grow to be totally operational.
Regardless of DCCC’s efforts, the suspension of ESMA’s choice, which was initiated
in October 2023, pending the attraction consequence, has expired.
For DCCC, the affirmation of withdrawal necessitates
strategic reassessment and potential changes to align with EU regulatory
necessities.
Future Concerns
The regulator talked about that because the regulatory
panorama evolves, entities working as CCPs and third-country entities should
stay vigilant in addressing compliance obligations to mitigate regulatory
dangers and guarantee continued market entry.
The European Supervisory Authorities’ (ESAs) Joint
Board of Attraction has confirmed the choice of the European Securities and
Markets Authority (ESMA) to withdraw the popularity of Dubai Commodities
Clearing Company (DCCC).
The withdrawal stems from the European Fee’s
inclusion of the United Arab Emirates (UAE) on the record of high-risk third
international locations with deficiencies of their anti-money laundering and
counter-financing of terrorism rules.
The choice to withdraw recognition impacts DCCC’s
standing as a Tier 1 third-country central counterparty (CCP). It adopted an
attraction introduced by DCCC in opposition to ESMA’s withdrawal.
With the Joint Board of Attraction’s unanimous dismissal
of DCCC’s attraction, ESMA’s withdrawal choice has grow to be totally operational.
Regardless of DCCC’s efforts, the suspension of ESMA’s choice, which was initiated
in October 2023, pending the attraction consequence, has expired.
For DCCC, the affirmation of withdrawal necessitates
strategic reassessment and potential changes to align with EU regulatory
necessities.
Future Concerns
The regulator talked about that because the regulatory
panorama evolves, entities working as CCPs and third-country entities should
stay vigilant in addressing compliance obligations to mitigate regulatory
dangers and guarantee continued market entry.
