US clearing houses more expensive after December 15 if US is not recognised
The current regulatory impasse that could
see European firms paying much more to trade in the US is down
to disagreement between Europe and the US over their differing
approaches to margin calls, according to sources.
European firms currently face a Clearing
Cliff of December 15, a deadline that will see European firms
having to pay up to an estimated 50% extra to use US clearing
The clearing cliff has been realised by
the European Commission’s refusal to recognise the
equivalence of the US regime which sources have said is largely
down to one point: differing margin periods.
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