Without equivalence a EU and UK firm would have to trade derivatives on a US SEF.
Euroclear UK & Ireland needs third country CSD recognition from EU.
Market participants need regulatory certainty to continue trading in global derivatives markets.
The regulator said this approach creates challenges, particularly for UK branches of EU investment firms.
Turquoise will invoke its Brexit contingency plans unless relevant equivalence decisions are agreed.
An independent review will make recommendations on how to encourage more listings.
UK will be granting a package of equivalence decisions to the EU and EEA member states.
Only mutual equivalence will allow firms to satisfy STO obligations at trading venues in both the EEA and UK.
The European Commission wants the industry to reduce exposures to UK market Infrastructures.
