On February 10, 2016, the European Commissioner for Financial Stability, Financial Services and Capital Markets Union and the CFTC jointly announced the adoption of a common approach regarding requirements for transatlantic central clearing counterparties. The common approach is intended to resolve an impasse that had prevented recognition of US CCPs under EMIR. Under the common approach, the European Commission is expected to determine that CFTC regulation of central counterparties is equivalent to EU requirements, subject to certain conditions. The CFTC is also expected to propose a determination of comparability with respect to certain EU requirements in order to permit EU CCPs that are or seek to be registered as derivatives clearing organizations to comply with such EU requirements in lieu of US requirements. The CFTC staff also committed to streamlining the registration process for EU CCPs wishing to register with the CFTC. In statements, CFTC Chairman Timothy Massad and Commissioner Jonathan Hill applauded the adoption of the common approach as an important step toward stable and uniform regulation of the global derivatives market.
More information regarding the common approach for CCPs is available at: http://www.shearman.com/~/media/Files/NewsInsights/Publications/2016/02/EUUS-Agreement-On-Regulation-OfCentral-Counterparties-FIAFR-021616.pdf.
The full text of the statement of CFTC Chairman Timothy Massad regarding the common approach is available at: http://www.cftc.gov/PressRoom/SpeechesTestimony/massadstatement021016.
The full text of the statement of Commissioner J. Christopher Giancarlo regarding the common approach is available at: http://www.cftc.gov/PressRoom/SpeechesTestimony/giancarlostatement021016.