Sionic Discusses Derivatives Clearing in Europe with DerivSource

We are seeing a more “gradual and measured approach” taken

Clearing, risk and regulatory expert Christian Lee from our specialist Banking & Markets team talks to Lynn Strongin Dodds at DerivSource about the derivatives central clearing space continuing to evolve post-Brexit, with European Commission’s latest attempt to shift clearing from London to Europe.  Last December, the EC set out proposals for European firms to clear a portion of their euro-denominated derivatives through European clearing houses or central counterparties (CCPs) from London by June 2025, when the equivalence waiver that allows its banks and money managers to clear trades in the UK expires.

Christian Lee comments:

“At the moment, the proposals are more carrot than stick to shift more clearing into the European Union. They are trying to avoid a Big Bang event and any unintended consequences when equivalence ends in 2025. The approach taken is more gradual and measured.”

Read the full story here: Derivatives Clearing in Europe: Wrinkles Still Need Ironing Out – Derivsource

About the author

I specialise in clearing, risk, derivatives reform and regulation, advising banks, international and regional exchanges and central counterparties how to manage regulatory change.