Maijoor: EU-US segregation clash ‘not a simple issue’

It is not clear that European rules will permit firms to use US collateral protections

esma-building
Esma headquarters

The chairman of the European Securities and Markets Authority (Esma), Steven Maijoor, says regulators are facing a 'conflict of law' as they try to resolve issues arising from differing transatlantic regulations on the protection of client collateral. In the US, banks can only offer an approach known as legal segregation with operational commingling (Lsoc), while the European Market Infrastructure Regulation (Emir) requires two types of accounts, neither of which matches Lsoc precisely. "Unde

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