London v Brussels – derivatives move to accelerate

Christian Lee comments on moves to ‘repatriate’ clearing to the eurozone

Clearing expert Christian Lee has commented on reports that the European Commission is set to require a proportion of derivatives clearing to move from London to within the EU.

Christian says:

“The movement of clearing to the EU is gaining momentum and is being actively progressed by the European Commission. The requirement for all EU clearing participants to maintain an ‘active account’ at an EU based CCP for their derivatives business with minimum volumes is a tangible first step in shifting this business away from the UK, which the EU sees as a ‘strategic vulnerability’. This move by the EU is to avoid any form of market dislocation before the temporary exemption for clearing expires in June 2025. EU based exchanges and CCPs will be the beneficiaries, whilst all EU based users of derivatives actively need to be planning on how to manage the migration of their portfolios.”

Meet the expert

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