EU Commission and CFTC announce common approach for transatlantic CCPs

The EU Commissioner for Financial Stability, Financial Services and Capital Markets Union, Jonathan Hill, and the US Commodity Futures Trading Commission (CFTC) Chairman Timothy Massad have announced a common approach regarding requirements for central clearing counterparties (CCPs).

The EU Commission and CFTC have indicated that the steps needed to implement this agreement will be put into place as soon as practicable. In particular, the Commission intends to adopt an equivalence decision with respect to CFTC requirements which will allow ESMA to recognise US CCPs as soon as is practicable. Once recognised, US CCPs will be able to continue to provide services in the EU whilst complying primarily with their own local requirements.

Meanwhile, the CFTC will propose a determination of comparability with respect to EU requirements, which will permit EU CCPs to provide services in the US whilst complying primarily with their own local requirements. The CFTC also intends to streamline the registration process for EU CCPs wishing to register with them.