Risk USA: EC likely to follow a US clearing exemption for FX swaps and forwards

The European Commission (EC) is likely to exempt foreign exchange swaps and forwards from a mandatory clearing requirement if the US decides to do so, according to Patrick Pearson, head of the financial markets infrastructure unit at the EC.

Speaking at the Risk USA conference in New York on Tuesday, Pearson said European regulators would consult with the market and with third country supervisors, and conduct an impact assessment before deciding to mandate central clearing for any class of