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

McCreevy Calls for Regulatory Overhaul and Continues Campaign for European CDS CCP

Subscribe to our newsletter

Originally appeared in MiFID Monitor

European Commissioner for Internal Market and Services Charlie McCreevy is back on his soapbox this week and he seems to have two particular bees in his bonnet. The first is, of course, the need for an overhaul of the European regulatory landscape to improve what he calls the “patchwork” of domestic supervisory coverage. The second is the lack of progress that has been made towards establishing a European central counterparty (CCP) for the credit default swap (CDS) market.

At a conference in Brussels earlier this week, McCreevy explained that previous attempts to tackle market oversight have failed because of domestic regulators’ insular approach to regulation. “In Europe there is now a broad consensus that our supervisory systems have not been and are not up to the mark,” he said.

McCreevy has also for some months been grandstanding the importance of a Europe-based CCP, in order to prevent the risk associated with these OTC derivatives being concentrated in the US market. There are also concerns from the Commission that European regulators would be at a disadvantage dealing with an entity out of their jurisdiction.

According to McCreevy these negotiations are continuing with industry participants including exchanges, clearers and broker-dealers. “There is still time to have further talks,” he told the conference.

Thus far, the broker-dealer community has failed to commit to the endeavour to establish a CCP by the second half of this year. Industry associations including the International Swaps and Derivatives Association (ISDA) and the Futures and Options Association have both spoken out against a European solution in favour of a “global” option.

McCreevy stated that legislation may be the only option: “Given the inadequate industry response so far I am keeping open the option of legislating.”

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: How to leverage data lineage for actionable business insights

Data lineage is a must-have for financial institutions, but is it being used to its greatest extent, and is it delivering actionable business insights that inform product development and support competitive advantage? This webinar will address these questions, looking first at the status quo of data lineage across capital markets, and moving on to discuss...

BLOG

Nasdaq CSD Renews LEI Service Platform

Nasdaq CSD, a central securities depository providing access to the Estonian, Icelandic, Latvian and Lithuanian markets, and an accredited Legal Entity Identifier (LEI) issuer in the Baltic states and Nordics, has released an enhanced LEI service platform, Nasdaq LEI, that provides more straightforward and effective LEI code issuance and management to help firms meet regulatory...

EVENT

Data Management Summit New York City

Now in its 14th year the Data Management Summit NYC brings together the North American data management community to explore how data strategy is evolving to drive business outcomes and speed to market in changing times.

GUIDE

Regulatory Data Handbook 2023 – Eleventh Edition

Welcome to the eleventh edition of A-Team Group’s Regulatory Data Handbook, a popular publication that covers new regulations in capital markets, tracks regulatory change, and provides advice on the data, data management and implementation requirements of more than 30 regulations across UK, European, US and Asia-Pacific capital markets. This edition of the handbook includes new...