Market halts clearing shift to Eurex ahead of EU consultation
Participants hit ‘pause’ after proposed three-year equivalence extension for UK clearing houses
Firms remain reluctant to move their euro swaps clearing to Eurex after the European Commission in mid-January proposed extending its temporary equivalence for UK clearing houses by three years. Without equivalence, EU-based firms cannot continue trading euro interest rate swaps at LCH, where most liquidity resides.
Market participants are also waiting to see which incentives the commission will introduce to encourage them to move to EU clearing houses before making any decision on whether to
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