Extraterritorial clash continues for clearing houses

While the Group of 20 nations want to see progress with financial regulatory reforms, individual authorities around the world are reluctant to relinquish domestic sovereignty over standards for central counterparties. Luke Clancy reports

Derivatives users have long come to terms with varying global timelines for the reform of the over-the-counter derivatives market. The US was first to move with the Dodd-Frank Act, with the initial mandatory clearing mandates – for swap dealers, major swap participants and so-called active funds – coming into effect on March 11. Europe is further behind – the European Market Infrastructure Regulation (Emir) came into force last August, but it will be several months before central clearing