Sionic clearing expert Christian Lee speaks to Julia Schieffer at DerivSource about the European Commission’s decision to extend the time-limited equivalence for UK central counterparties (CCPs) for another three years until 30 June 2025. This announcement follows a statement made by Commissioner for Financial Services, Financial Stability and Capital Markets Union, Mairead McGuiness on the way forward for central clearing where she noted an announcement on an extension of temporary equivalence would be forthcoming.
Christian Lee comments:
“I think this is a significant boost to the City and LCH in particular. The risk of market disruption has clearly influenced this decision and the status quo for OTC clearing is being maintained. Nevertheless the concerns major buy and sell side participants have regarding concentration of risk means that alternative EU based solutions will co-exist with LCH.”
Read the full article here on DerivSource.