Press Release: First ‘equivalence’ decisions for central counterparty regulatory regimes adopted today

The European Commission adopted on 30 October 2014 its first 'equivalence' decisions for the regulatory regimes of central counterparties (CCPs) in Australia, Hong Kong, Japan and Singapore.

The CCPs in these third country jurisdictions would be able to obtain recognition in the EU, and could therefore be used by market participants to clear standardised OTC derivatives as required by EU legislation, whilst remaining subject solely to the regulation and supervision of their home jurisdiction. Although rules might differ in the detail, international regulators are pursuing the same objectives to promote financial stability by promoting the use of CCPs that are subject to robust prudential requirements. Through the use of deference, as agreed by the G20, regulatory gaps, duplication, conflicts and inconsistencies which could lead to regulatory arbitrage and market fragmentation were limited.

ESO: Background information: Statement by Commissioner Barnier on Global Derivatives Regulation http://www.europeansources.info/record/statement-statement-by-commissioner-barnier-on-global-derivatives-regulation/

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