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: Sanctions – The new pre-trade challenge for the buy-side

Sanctions screening at the security level is a relatively recent requirement for the buy-side. It dives deeper than traditional KYC and AML screening and is immensely challenging as firms must monitor frequently changing sanctions lists, source up-to-date sanctions data and beneficial ownership data, and integrate these to screen growing lists of potentially sanctioned securities. As...

BLOG

Brexit: Equivalence is Dead. What Now?

Last week, UK Chancellor Rishi Sunak delivered his first speech at Mansion House, outlining his vision for the UK’s financial services industry. During the speech, while stating that the UK government’s ambition following Brexit had been to reach a comprehensive set of mutual decisions on financial services equivalence, he conceded that “this has not happened,”...

EVENT

RegTech Summit Virtual

The RegTech Summit Virtual is a global online event that brings together 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

Entity Data Management Handbook – Seventh Edition

Sourcing entity data and ensuring efficient and effective entity data management is a challenge for many financial institutions as volumes of data rise, more regulations require entity data in reporting, and the fight again financial crime is escalated by bad actors using increasingly sophisticated techniques to attack processes and systems. That said, based on best...