US central counter parties (CCPs) seem to be gaining confidence that the European Commission (EC) will overlook differences in their clearing house rules, preventing US CCPs from losing European clients.
The rules set out by the European Market Infrastructure Regulation (Emir) vary from those followed by US CCPs. While EMIR requires a minimum holding period for futures margining in Europe to be two days, its only one in the US, for example.
Because of this and a list of other differences, US CCPs have been concerned over whether or not they would be prevented, or at least delayed, from being approved by the EMIR as qualified CCPs in Europe.
However, it seems these fears are being put to rest as things begin to move forward. Perhaps one of the biggest factors in this is the Commodity Futures Trading Position’s new attitude toward working with European regulators after the departure of previous chairman Gensler. The CFTC has recently agreed to allow US entities to trade on European platforms, provided they meet certain standards.
Because of this, many are now assuming that the EC will be much more inclined to allow US CCPs that have adopted similar internal practices to Europe’s to qualify.