EU active account rule may impose costly CCP basis

Buy-siders say end-users could be forced into volatile Eurex/LCH basis at the worst time under EU proposals

LCH Eurex data

A European Union proposal aimed at forcing some derivatives instruments to be cleared onshore risks imposing an ‘import tax’ on end-users, senior buy-side market participants have warned. They fear their firms may be pushed onto the wrong side of a pricing discrepancy between euro interest rate swaps cleared on Frankfurt based-Eurex and London-based LCH.

The active account requirement, which forms part of the second major revision of the European Market Infrastructure Regulation – popularly

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

If you already have an account, please sign in here.

Register

Want to know what’s included in our free registration? Click here

This address will be used to create your account

Calibrating interest rate curves for a new era

Dmitry Pugachevsky, director of research at Quantifi, explores why building an accurate and robust interest rate curve has considerable implications for a broad range of financial operations – from setting benchmark rates to managing risk – and hinges on…

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here