About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

CFTC Grants Eurex Clearing Approval to Clear US OTC Derivatives

Subscribe to our newsletter

The Commodity Futures Trading Commission (CFTC) has issued an order with respect to the multilateral clearing activities that Eurex Clearing intends to undertake in the United States for OTC derivative instruments.

Eurex is a central counterparty licensed by the Bundesanstalt für Finanzdienstleistungaufsicht (BaFin) of the Federal Republic of Germany. In the order, the CFTC determined that the supervision that BaFin, in conjunction with Deutsche Bundesbank, provides with respect to the multilateral clearing activities of Eurex satisfies appropriate standards within the meaning of Section 409(b)(3) of the Federal Deposit Insurance Corporation Improvement Act (FDICIA). Accordingly, the order permits Eurex to operate a multilateral clearing organisation for the clearing of OTC derivative instruments in the US. BaFin and the CFTC have entered into agreements providing for the sharing of information regarding the clearing activities of Eurex.

This order is the fourth action that the CFTC has taken on the basis of Section 409(b)(3) of FDICIA, which was added by the Commodity Futures Modernisation Act of 2000 (CFMA). Section 409 provides that an MCO for OTC derivative instruments, such as Eurex, may operate in the United States if, among other alternatives, the MCO is supervised by a foreign financial regulator that the CFTC, or one of several other United States financial regulators, has determined satisfies appropriate standards.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Adding Intelligence to Electronic Execution for Best Execution Under MiFID II

MiFID II’s provisions for best execution promise to be more rigorous than its predecessor’s. They also will be applied to a host of relatively illiquid and potentially more complex asset classes. Compliance will be challenging. This webinar looks at the emerging requirement for truly smart order routing under MiFID II’s best execution rules: Approaches to...

BLOG

Data Concern Over EU’s Streamlining of Green Regulations

Financial institutions may have to rely more heavily on their data teams and vendors to surface sustainability risks in their portfolios after the European Union watered down some of its key corporate ESG reporting regulations. The EU’s Omnibus package announced earlier this year is intended to streamline the compliance processes for regulations including the Corporate...

EVENT

AI in Capital Markets Summit London

The AI in Capital Markets Summit will explore current and emerging trends in AI, the potential of Generative AI and LLMs and how AI can be applied for efficiencies and business value across a number of use cases, in the front and back office of financial institutions. The agenda will explore the risks and challenges of adopting AI and the foundational technologies and data management capabilities that underpin successful deployment.

GUIDE

Enterprise Data Management Europe 2010

he US may seem to be ahead of the rest of the world in terms of championing the data management cause with the inclusion of reference data focused items in the Dodd-Frank Act, but Europe is not too far behind. Senior European level officials such as European Central Bank (ECB) president Jean-Claude Trichet have taken...