Tuesday’s announcement by the EC that EU27 institutions will be able to use the UK CCPs even in a hard Brexit is an encouraging sign. Valdis Dombrovskis seemed to be saying that the UK CCPs would be granted temporary (he did not say how long) recognition under Article 25 of EMIR (see many entries on FinBrief on this). He stressed that if UK rules and supervision diverged from EU standards, the equivalence declaration could be withdrawn. The derivatives (and insurance) markets now needs something similar about cross-border business generally. July’s UK Government’s paper (noted here on FinBrief) stressed that the EU’s existing powers to withdraw equivalence – at 30 days’ notice – would be unacceptable for the FS industry (to see why, read a recent post from Lenz & Staehelin in Switzerland about the EU’s equivalence decision under MIFID regarding the Swiss stock exchange – you might need your pocket French/English dictionary).