Authorities Adopt Determinations On Supervision Of 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 in the Official Journal of the European Union. The decision followed the announcement by the Commodity Futures Trading Commission (CFTC) and the European Commission of a common approach on the supervision of central clearing counterparties (CCPs) operating in the United States and the European Union.

The decision provides that the CFTC's legal and supervisory arrangements for derivatives clearing organisations (DCOs) that are systemically important DCOs by the Financial Stability Oversight Council or DCOs that have opted into additional standards similar to the systemically important DCO regime (so-called 'Subpart C DCOs') are equivalent to the EU requirements under the EU Over-the- Counter Derivatives, Central Counterparties and Trade Repositories Regulation (648/2012) (EMIR), provided that