CCPs should have last word on OTC clearing, says FOA

Supervisors should not be able to force clearing houses to accept certain classes of OTC derivative, says FOA's Belchambers

stop-sign

Central counterparties (CCPs) should be able to refuse to clear certain types of over-the-counter derivatives if they are not willing to take on the risk, according to Anthony Belchambers, chief executive of the Futures and Options Association (FOA). Draft European legislation originally gave the European Securities and Markets Authority (Esma) the power to create binding clearing obligations – a clause that has proved controversial.

"I think there is a tension between regulatory policy that has

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Switching CCP – How and why?

As uncertainty surrounding Brexit continues and the impacts of Covid-19-driven market volatility are analysed, it is essential for banks and their end-users to understand their clearing options, and how they can achieve greater capital and cross…

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here