CFTC slams clearing equivalence efforts

By Hazel Sheffield
10 Jun 2014

The Commodity Futures Trading Commission has slammed current efforts for mutual recognition of clearing regimes when European buyside firms attempt to access US clearinghouses. Ananda Radhakrishnan, director of the division of clearing and risk at the CFTC, called on the IntercontinentalExchange and LCH.Clearnet to clear its futures contracts exclusively at US designated contract markets, removing the need for equivalence in Europe.

“ICE and LCH have a choice. They both have clearing organisations in the states. If they move the clearing of these futures contracts back to a US-designated contract market this problem doesn't arrive,” Radhakrishnan said.

During a panel on regulating a global marketplace, Radhakrishnan said the CFTC had ...

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