Eurex and ICE lead clearing race after Liffe setback

Article reports that Eurex Clearing and the Intercontinental Exchange of the US have emerged as the front-runners in the race to establish central clearing for a key part of the over-the-counter derivatives markets in Europe, after rival NYSE Liffe said it had placed its project 'under review'.

The development comes as efforts by the European Commission to force the derivatives industry to get a clearing mechanism in place by the end of July 2009 risks falling short of their original goal.

ISDA: Press Release, 19.2.09: Major Firms Commit to EU Central Counterparty for CDS http://www.isda.org/press/press021909.html

ISDA: Press Release, 3.7.09: ISDA Welcomes European Commission Communication on Derivatives Markets http://www.isda.org/press/press070309.html

European Commission: MEMO/09/314: Derivatives Markets – Frequently Asked Questions http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/09/314&format=DOC&aged=0&language=EN&guiLanguage=en

European Commission: DG Internal Market and Services: Financial Markets Infrastructure: Derivatives http://ec.europa.eu/internal_market/financial-markets/derivatives/index_en.htm

European Commission: COM (2009)332: Communication: Ensuring efficient, safe and sound derivatives markets http://ec.europa.eu/internal_market/financial-markets/docs/derivatives/communication_en.pdf

EurActiv, 6.7.09: EU courts US dealers with flexible derivatives rules http://www.euractiv.com/en/financial-services/eu-courts-us-dealers-flexible-derivatives-rules/article-183803

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