EU And US Authorities Adopt Determinations On Supervision Of EU And US CCPs

On March 16, 2016, the European Commission published its equivalence decision on the derivatives regulatory regimes for derivatives clearing organisations in the United States was published in the Official Journal of the European Union. The decision follows the announcement by the European Commission and the Commodity Futures Trading Commission of a common approach on the supervision of CCPs operating in the US and EU. The decision provides that the legal and supervisory arrangements of the CFTC for DCOs that are systemically important derivatives clearing organizations (SIDCOs) by the Financial Stability Oversight Council or DCOs that have opted into additional standards similar to the SIDCO regime (so-called "Subpart C DCOs") are equivalent to the EU requirements under EMIR, provided that the DCO's internal rules and procedures meet the following requirements: (i) for derivatives contracts executed on regulated markets, a minimum liquidation period of two days for