EU trading obligation threatens US equivalence

Rigid criteria and poor data could make EU regime too narrow to achieve US recognition

eu-us-jigsaw
Access denied: traders from one jurisdiction could be locked out of the other's trading platforms

Rules that will require some derivatives to trade on multilateral platforms are narrower in Europe than in the US, market participants are warning – which might make it difficult to obtain a so-called equivalence ruling, in which one jurisdiction allows its overseas firms to comply with local rules.

Mutual recognition of clearing rules between the EU and US – vital in easing cross-border derivatives trades – only came about after years of haggling, and trouble could now be brewing in the trading

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