Pan European financial regulatory oversight body European Securities and Markets Authority (ESMA) has announced that the Joint Board of Appeal of the European Supervisory Authorities (EBA, EIOPA and ESMA – the ESAs) unanimously decided to dismiss the appeal brought by Dubai Commodities Clearing Corporation (DCCC) against the ESMA, and to therefore confirm the ESMA decision to withdraw its recognition.

The DCCC is a unit of the Dubai Gold & Commodities Exchange (DGCX).

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.

The Board had decided to suspend the ESMA decision in October 2023 until the outcome of the appeal is concluded. With today’s publication, the suspension has expired and the ESMA decision has become fully operational.