EU Opens Door to U.S. Clearing Firms After a Years-Long Wait
- Decisions comes almost five years after CFTC decision
- The bloc has been slow to grant equivalence to the U.K.
This article is for subscribers only.
The European Union granted equivalence to a set of U.S. clearinghouses, easing their access to its financial markets.
The decision, which allows U.S. central counterparties to provide clearing services in the European Union, is conditional and applies to U.S. Securities and Exchange Commission-regulated firms, according to a statement Wednesday. Clearinghouses stand between the two sides of a derivatives trade and hold collateral, also known as margin, from both in case a member defaults.