On January 24, the European Securities and Markets Authority (ESMA) and the Financial Services Agency of Japan (JFSA) finalized a Memorandum of Cooperation (MOC) regarding central counterparties (CCPs). Under Article 25(2)(c) of the European Market Infrastructure Regulation (EMIR), the establishment of an MOC is a precondition for ESMA to recognize CCPs established in Japan that have applied for recognition under EMIR to provide clearing services to clearing members or trading venues established in the European Union. The European Commission previously made a determination, pursuant to Article 25(6) of EMIR, that the legal and supervisory arrangements of Japan for CCPs are equivalent to the requirements for CCPs under EMIR. The MOC is effective as of February 18.

In its statement regarding the MOC, ESMA noted that it was working closely with other third-country regulators on similar cooperation arrangements.

The MOC can be found here.