Leaked EC clearing proposal leaves question mark over LCH

UK CCPs expected to secure equivalence, but “vague” active accounts mandate sparks fears


A leaked draft of the European Commission’s proposals to reform clearing in the European Union appears to be less strict than many in the industry feared – at least at first glance. But on closer inspection, a new requirement that EU firms must clear “at least a proportion” of their euro-denominated derivatives trades at EU central counterparties (CCPs) could force a “massive move” of exposures out of UK clearing houses, according to market sources.

The draft revisions to the European Market

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