Expected delay to non-EU CCP approval risks frontloading panic
Lawyers predict many CCPs will remain in limbo by the current December 15 deadline, which overlaps with the start of frontloading and ups the pressure on banks ahead of clearing requirement from April 2016
Lawyers expect a fourth delay to the regulatory approval of a large number of non-EU central counterparties (CCPs), which could result in big banks using clearing houses that may not be approved and then scrambling to close out some trades before the start of mandatory clearing in Europe.
Once clearing becomes obligatory in April 2016 for interest rate swaps as currently expected, if banks want to clear their trades at a CCP based outside the EU, the European Market Infrastructure Regulation
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