CFTC and European Commission CCP Agreement: CFTC Chairman Massad and Commissioner Hill Agree to Common Approach Regarding Requirements for CCPs

Sullivan & Cromwell LLP - February 11, 2016

On February 10, 2016, United States Commodity Futures Trading Commission (“CFTC”) Chairman Timothy Massad and European Commissioner for Financial Stability, Financial Services and Capital Markets Union Jonathan Hill announced an agreement (the “Agreement”) between their respective agencies for a common approach regarding the regulatory requirements for central clearing counterparties (“CCPs”) under the rules and regulations of their respective jurisdictions.  The Agreement had long been sought by many market participants, and the absence of an agreement had created an impediment to cross-border clearing.  When the Agreement is fully implemented, it will facilitate market participants in one jurisdiction choosing to clear through a CCP in either jurisdiction.