Asia clearing mandates to go live before European and US regulators approve CCPs
Several Asia markets are set to mandate central clearing but European and US banks face the dilemma of whether to join onshore CCPs before they receive approval from their domestic regulators – potentially leaving them exposed to onerous capital charges
Crunch time for clearing has finally arrived – China, India and South Korea will all implement mandatory clearing requirements in the near future, while US and European regulatory issues around third-country central counterparty (CCP) recognition remain unresolved. (It should be noted that Japan and other Asian jurisdictions have not worked out standard procedures for recognition either.) As a result, global banks face critical decisions about CCP membership and which markets they will
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