Recital 2

(2)As announced in the Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions of 9 July 2020, ‘Getting ready for changes – Communication on readiness at the end of the transition period between the European Union and the United Kingdom’ ⁴ , on the basis of an analysis conducted with the European Central Bank (‘ECB’), the Single Resolution Board and the European Supervisory Authorities, the Commission has identified that financial stability risks could arise in the area of central clearing of derivatives through CCPs established in the United Kingdom (‘UK CCPs’). In order to give clearing members established in the Union (‘Union clearing members’) the time to reduce their exposure to United Kingdom market infrastructure as well as CCPs established in the Union (‘Union CCPs’) the time to develop further their capacity to clear relevant trades, and to address the possible risks to financial stability, it is justified to adopt an equivalence decision for the United Kingdom in that area.