On February 10, 2016, the European Commission and US CFTC announced they had reached agreement on a common approach to requirements for central clearing counterparties. The Commission is expected to adopt an equivalence decision affirming that the CFTC requirements for US CCPs are equivalent to those under EMIR. US CCPs recognised under EMIR will be able to continue to provide services in the EU whilst complying with CFTC requirements, although this will likely be subject to US CCP compliance with certain aspects of EU rules on collateral calculations. ESMA has also announced that whilst it has 180 days to recognise CCPs under EMIR, it aims to shorten that period given the deadline of June 21, 2016, for the start of the clearing obligation. The CFTC will propose a determination of comparability with EU requirements, allowing EU CCPs to provide services to US clearing members and clients whilst complying with EU requirements. The registration process for EU CCPs wishing to register with the CFTC is also expected to be streamlined. A separate more detailed client note will be published in due course, treating these issues in more detail.
The statement of the Commission and CFTC is available at: http://ec.europa.eu/finance/financialmarkets/docs/derivatives/20160210-eu-cftc-joint-statement_en.pdf.
ESMA’s statement is available at: https://www.esma.europa.eu/sites/default/files/library/2016-278_euus_approach_ccp_equivalence.pdf.