ESMA writes to Commission on third-country regimes

ESMA has written to the European Commission setting out how existing third-country regimes could be improved.  While not ostensibly about Brexit, the letter refers to the increased number of market infrastructures and corresponding activity that will be outside the EU post-Brexit that will be critical for EU markets. It thinks that enhancing the implementation and monitoring of the equivalence decisions on third country regimes, and regular monitoring of the relevant third country’s framework will be a significant improvement. It also says there should be the possibility of supervision at EU level of third-country entities, depending on the risks they pose. It thinks the Commission should be focussing on credit rating agencies, trade repositories, benchmarks and possibly trading venues and data providers.