ESMA withdraws the registration of UK Credit Rating Agencies and Trade Repositories following Brexit

On the 4th January 2021, the European Securities and Markets Authority (“ESMA”) has proceeded to withdraw the registration of a number of Credit Rating Agencies (“CRA”) and Trade Repositories (“TR”) registered in the United Kingdom (“UK”).

The withdrawals were brought about following the end of the transition period of the UK’s withdrawal from the EU, being the 31st December 2020. The CRA Regulation, the European Market Infrastructure Regulation, and the Regulation on transparency of securities financing transactions and of reuse, require ESMA to withdraw the registration of a firm which is no longer a legal person established in the EU.

The CRAs which have had their registration withdrawn consist of the following:

  • AM Best Europe-Rating Services Ltd;
  • DBRS Ratings Ltd;
  • Fitch Ratings Ltd;
  • Fitch Ratings CIS Ltd;
  • Moody’s Investors Service Ltd; and
  • The Economist Intelligence Unit Ltd.

While the TRs which had their registration withdrawn are the following:

  • DTCC Derivatives Repository Plc;
  • UnaVista Limited;
  • CME Trade Repository Ltd; and
  • ICE Trade Vault Europe Ltd.

ESMA also made it clear that the ratings issued by the aforementioned CRAs can no longer be used for regulatory purposes in the EU unless endorsed by an EU CRA.

With regards to UK TRs, ESMA pointed out that these can no longer be used for derivatives and securities financing transactions reporting. Thus, relevant entities must undertake the required reporting through an EU established TR.

Feel free to contact us should you require any further information on the establishment of CRAs and TRs within the EU.