MNI: U.S, EC Agree Common Approach Certain Deriv Trade Venues

By Tara Oakes

     WASHINGTON (MNI) - The European Commission and U.S. Commodity Futures

Trading Commission (CFTC) announced Friday they had agreed on a common approach

on "certain derivative trading venues".

     EC Vice-President Valdis Dombrovskis and CFTC Chairman Christopher

Giancarlo revealed the agreement in Washington, along with the EC's adoption of

an equivalence decision on the US framework for non-cleared over-the-counter

(OTC) derivatives.

     "Together with a similar decision by the CFTC for the EU framework, this

will avoid a double regulatory burden for these transactions both in the EU and

in the US," Dombrovskis said.

     "This is important because it ensures that crossborder actors will not have

to post double margins for derivatives transactions," he added.

     Giancarlo said that the measures were "critical to maintaining the

integrity of our swaps market".

     Dombrovskis will now propose that the EC "adopts an equivalence decision to

recognize CFTC-authorized SEFs and DCMs that operate in the United States as

eligible venues for the execution of those derivatives transactions that will be

subject to the EU trading obligation" -- provided they align with the

requirements of MiFIR, MiFID II and the Market Abuse Regulation ("MAR").

     Giancarlo will support and CFTC will vote on expemting "EU authorized swap

trading venues ... from the requirement to register with the CFTC as SEFs,

provided that they satisfy the standard set forth in CEA Section 5h(g)", the

announcement document read.

     The EU and the CFTC have to provide each other with lists to extend this

exemption, which is hoped for in the coming weeks to make sure it is all up and

running by January 3, 2018.

     Both sides would be able to suggest updates to lists of venues provided and

agreed on for the exemption. 

--MNI Brussels Bureau; +44 203-865-3851; email: tara.oakes@marketnews.com

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

[TOPICS: M$E$$$,M$U$$$,MC$$$$,M$$DR$]