If an EU CCP is not able to provide a sufficiently competitive offer, there is a strong likelihood that clearing would be relocated to other third-country jurisdictions, like the US.
On 22 March 2022 ALFI responded to the EU Commission on the consultation on the review of the central clearing framework
We are happy to contemplate a revisited Clearing framework in
light of the European Commission’s agenda. Nevertheless, the key
decision driver to choose a CCP, will always remain competitiveness,
based in particular on service prices, regulatory obligations (e.g.,
reporting), and risks aspects. Sufficient liquidity is also an item for
consideration, but as a side stake as intrinsically linked to service
pricing and venue competitiveness.
View the ALFI respons
© ALFI - Association of the Luxembourg Fund Industry
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