European Market Infrastructure Regulation Authorisation of central counterparties (CCPs) and recognition of third-country CCPs

http://www.europarl.europa.eu/RegData/etudes/BRIE/2018/611002/EPRS_BRI(2018)611002_EN.pdf

EU’s exposure to third-country CCP risks will also be exacerbated by the withdrawal of the UK from the EU in 2019, as this will lead to a shift of risk from within to outside the EU’. (IA, p. 33 and elsewhere). Both issues are substantiated with evidence. For instance, and convincingly, the IA relates that around 75 % of centrally-cleared interest rate derivatives denominated in euros is cleared in the UK (IA, p. 18 and 48). The UK is also home to 4 out of 17 EU CCPs, more than any other Member State (IA, pp. 80-81). As far as the growing systemic importance of central clearing is concerned, the IA provides evidence that the volume of CCP activity — in the EU and globally — has grown rapidly. For instance, centrally cleared transactions have almost doubled in the interest rate OTC derivatives segment, from about 36 % at the end of 2009 to about 60 % at the end of 2015 (IA, p. 7).

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

Blog at WordPress.com.

Up ↑

%d bloggers like this: