European Commission And U.S. CFTC Agree Common Approach On Requirements For Transatlantic CCPs

On February 10, the European Commission published a statement setting out details of the common approach it has agreed with the U.S. Commodity Futures Trading Commission (CFTC) on requirements for transatlantic central counterparties (CCPs).

The statement explains that the agreement reached will ensure that EU CCPs will be able to do business in the U.S. more easily, and that U.S. CCPs can continue to provide services to EU companies. To implement the agreement:

• The Commission intends to shortly propose for adoption an equivalence decision under the European Market Infrastructure Regulation ("EMIR") with respect to CFTC requirements for U.S. CCPs. This will allow the European Securities and Markets Authority ("ESMA") to recognize U.S. CCPs wanting to serve EU markets as soon as practicable. Once recognized, a U.S. CCP may continue to provide services in the EU while complying primarily with CFTC requirements. It will also become a qualifying CCP for the purposes