Third-country equivalence throws up clearing uncertainty

GLOBALCAPITAL INTERNATIONAL LIMITED, a company

incorporated in England and Wales (company number 15236213),

having its registered office at 4 Bouverie Street, London, UK, EC4Y 8AX

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement | Event Participant Terms & Conditions

Third-country equivalence throws up clearing uncertainty

emma-dwyer-allen-overy.gif

Foreign counterparties that fall under the scope of European Markets Infrastructure Regulation could find that derivatives transactions priced as OTC are retrospectively eligible for clearing under third-country equivalence rules, according to lawyers. It means that participants could be entering OTC trades at different pricing levels compared to those trades eligible for clearing, while finding later that they will also have an obligation to clear that OTC trade.

Unlock this article.

The content you are trying to view is exclusive to our subscribers.

To unlock this article:

Request a Free Trial or Login

Related articles

Gift this article