US energy futures may be forced out of UK CCPs

Cross-border clash threatens contracts cleared at Ice Clear Europe and LCH.Clearnet

Conflicting transatlantic rules on the protection of client assets could force London's largest central counterparties (CCPs), Ice Clear Europe and LCH.Clearnet, to move clearing of US energy futures to their US arms. Currently, hundreds of contracts traded on US futures exchanges are being cleared in the UK.

The problem is that CCP members that extend clearing services to a wider array of clients have to register with the Commodity Futures Trading Commission (CFTC) as a futures commission