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The European Union intends to enhance its cooperation with U.K.-based clearinghouses, allowing them to manage derivatives transactions on the European market until 2028.
The European Commission has suggested prolonging the authorization for clearing EU transactions through U.K.-based firms until 2028. This collaboration was initially projected to conclude by June 30, 2025, according to the Financial Times.
U.K. clearinghouses currently handle approximately $3.5 trillion in daily derivatives transactions, with the majority managed by the London Clearing House (LCH) and Intercontinental Exchange (ICE).
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Olof Gill, European Commission Spokesperson for Economic Security, Trade, Financial Services, and Customs, stated that the primary aim of this initiative is to ensure financial stability, which is essential for the development of the Savings and Investments Union (SIU), aimed at creating a unified financing market within the EU. Gill also emphasized that LCH and ICE are systemically important for the financial stability of the EU.
EU member states have five days to challenge the European Commission’s proposal. However, experts believe this is unlikely, as the EU does not possess the necessary infrastructure to manage the volume of transactions currently handled by the U.K.’s central counterparties (CCP).
In February 2024, the European Parliament and the EU Council reached a preliminary agreement on a clearing package designed to decrease the bloc’s dependence on U.K. clearinghouses and enhance Europe’s internal capital market. Nevertheless, the initiative has stalled, leaving U.K. clearinghouses as a critical component of the EU derivatives market.
In May 2024, U.S. traders in traditional financial markets gained access to cryptocurrency derivatives introduced on the Chicago Board Options Exchange (Cboe).
Сообщение U.К. to Continue Clearing EU Derivatives Trades Till 2028 появились сначала на CoinsPaid Media.
