ESMA's Withdrawal of EU Recognition for Dubai Commodities Clearing Corporation Confirmed

On Tuesday (February 6), the European Securities and Markets Authority (ESMA) announced that the Joint Board of Appeal of the European Supervisory Authorities (EBA, EIOPA and ESMA – the ESAs) ("the Board") unanimously decided to dismiss the appeal brought by Dubai Commodities Clearing Corporation (DCCC) against ESMA and to therefore confirm the ESMA decision to withdraw its recognition.

DCCC is a leading CPP in Dubai and a wholly-owned subsidiary of the Dubai Gold & Commodities Exchange (DGCX). In October 2023, the Board decided that the application for suspension brought by DCCC against ESMA was admissible and suspended the ESMA Decision.

The application was brought in relation to ESMA's Decision, adopted under Article 25p of Regulation (EU) No 648/2012 (EMIR), to withdraw the recognition of DCCC as a Tier 1 third-country central counterparty (CCP).

The decision is a consequence of the United Arab Emirates (UAE) being included by the European Commission on the list of high-risk third countries presenting strategic deficiencies in their national anti-money laundering and counter financing of terrorism ("AML/CFT") regime, provided for in the Commission Delegated Regulation (EU) 2016/1675.

With the latest publication, the suspension has expired and the ESMA decision has become fully operational.