Eurex: heightened requirements for systemic CCPs make sense

Author: John Crabb | Published: 11 Dec 2018

The EU Commission’s proposal to allow the European Central Bank full oversight of all clearing houses that trade heavily in euros, including those not domiciled within its borders, has been met with scepticism from US regulators.

But some market participants argue that plan to create two separate categories of central counterparty clearing houses (CCPs) depending on their systemic importance could well work, though practical details need to be ironed out.

According to Eurex Clearing’s chief executive, Erik Tim Müller, to some market providers this feels like the right way forward. There must be a way to operate globally but not fall under dual supervision if a clearing house is mainly focused on its home market currency as is the case for all major US players today and also for Eurex Clearing. In particular, looking at the activities of the US and the EU 27 CCPs, they seem to be...