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CCP equivalence- US says “I do” too

Following the CFTC-EU Common Approach and the EC’s recognition of US equivalency; the CFTC yesterday unanimously approved a positive “comparability determination”, allowing DCO/CCPs subject to EMIR to benefit from substituted compliance with its clearing regulations. EU-authorised, and hence EMIR-compliant, CCPs will now be effectively absolved from CFTC requirements for financial resources, risk management, settlement procedures and default rules. Chairman Massad and Commissioner Giancarlo each put their typical spin on the fast-evolving CCP tie-up.

On the other side of the Atlantic, the complementary EC Implementing Decision on US equivalence under EMIR was published in the OJ. The Decision confirms that its equivalency assessment will relate only to the CFTC and those DCOs regulated by it, it does not extend to SEC jurisdiction. The Implementing Decision comes into force 20 days after its OJ publication on 5 April 2016.

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