Lessons can be learned from the implementation of the mandate in the US, says Jonathan Watkins in the final part of our series on the OTC clearing mandate in Europe.
In a hare and the
tortoise scenario, the remaining jurisdictions have let the US
march ahead, giving them a chance to observe and correct the
mistakes made in their year of rolling out the sweeping
While differences exist
in the confirmation process, collateral mechanisms and the
reporting to trade repositories, the US has still left a trail
of lessons for the regulatory enforcers in Europe and Asia
It all began in March
this year, when the US began its long-overdue rollout of
mandatory clearing rules in three stages.
"Category one was a small
group of clients; big clients though. I would say to a good
degree that small group of clientele was well prepared and were
preparing themselves for a period of time," says Sanjay
Kannambadi, global head and CEO, derivatives clearing and
electronic execution at BNY Mellon.
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