Speaking at the Futures Industry Association's IDX conference in London, Andreas Preuss, chief executive of Eurex, warned that twin-speed market reforms – and conflicting national priorities – are making it harder for exchanges and clearing houses to reach customers on both sides of the Atlantic. "We have, and will continue to have for years to come, an asymmetry in regulation between the United States and Europe. The asymmetry has implications for market accessibility... [look at] how complicated it is for a European exchange or clearing house to set up their business in the US", said Preuss.
Dealers and clearing houses alike have railed against the implementation of differing and sometimes conflicting derivatives rules by national authorities. As one example, US stipulations on the protection of customer collateral could prevent contracts executed on US venues from being cleared in London, as is the case for several hundred Ice-listed energy futures. These differences – in timeline as well as content – are making it difficult for European and other third-country clearing houses to gain formal recognition from US regulators; Eurex Clearing is currently reliant on temporary exemptive relief from the Commodity Futures Trading Commission (CFTC) rather than operating as a fully fledged derivatives clearing organisation.
Ice's Sprecher said regulators in different jurisdictions had also shown an increased willingness to ask for help when it came to translating the thornier parts of G-20 reforms into national law. "A lot of the primary legislation has been passed and, now that it's being implemented, it's very complicated where it touches us", he said. "I've found that regulators are asking for our help in guiding through a rational solution that complies with the law."
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