The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

CFTC Grants Eurex Clearing Approval to Clear US OTC Derivatives

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.

Related content

WEBINAR

Recorded Webinar: Entity identification and client lifecycle management – How financial institutions can drive $4 billion in cost savings

A new model in Legal Entity Identifier (LEI) issuance has created significant opportunities for financial institutions to capitalise on their KYC and AML due diligence. By becoming Validation Agents and obtaining LEIs on behalf of their clients, financial institutions can enhance their client onboarding experience, streamline their internal operations, and open the door to new,...

BLOG

ACA Compliance Group Launches New Global ESG Practice

ACA Compliance Group (ACA) today launched a specialist global environmental, social, and governance (ESG) advisory practice, headed up by Dan Mistler, who joins ACA from ESG and environment firm, Bridge House Advisors. Sustainability and responsible investing increasingly appear on the agendas of global political leaders, regulators, and firms alike. According to President-elect Joe Biden, the U.S. will...

EVENT

RegTech Summit Virtual

The RegTech Summit Virtual is a global online event that will be held in June 2021 with an exceptional guest speaker line up of RegTech practitioners, regulators, start-ups and solution providers to collaborate and discuss innovative and effective approaches for building a better regulatory environment.

GUIDE

Regulatory Data Handbook 2020/2021 – Eighth Edition

This eighth edition of A-Team Group’s Regulatory Data Handbook is a ‘must-have’ for capital markets participants during this period of unprecedented change. Available free of charge, it profiles every regulation that impacts capital markets data management practices giving you: A detailed overview of each regulation with key dates, data and data management implications, links to...