The CFTC issued an order stating that the supervision of Eurex clearing activities provided by BaFin, in conjunction with the German central bank satisfies appropriate standards, thus permitting Eurex to operate a multilateral clearing organization in the US. Section 408(1) of FDICIA (12 U.S.C. 4421(1)) defines MCO to  mean “a system utilized by more than [two] participants in which  the bilateral credit exposures of participants arising from the  transactions cleared are effectively eliminated and replaced by a  system of guarantees, insurance, or mutualized risk of loss.”