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What's Causing the Delays in New OTC Derivatives Rules? 

February 18, 2015

Gregg Wirth, Traders Magazine 

The 18-month-long stalemate between regulators in the US and the European Union (EU) continues to hobble clearing operations in the over-the-counter (OTC) derivatives market, raising costs and risk for buyside firms and increasing concentration levels among remaining central counterparties (CCPs).

Traders spoke with Virginie O'Shea, senior analyst at Aite Group, and asked her what the dangers were and when—or if—the market can expect a resolution.

Traders: This dispute, which has its roots in a regulatory turf war, has dragged on much longer than expected. Are they still arguing about the same things? Is there an end in sight?

Virginie O’Shea: It is the same set of issues being debated. They have been fixated on those for some time. Now, there are rumors circulating around the European Commission that an agreement between the EU and the US is imminent—though these have been false hopes before. It is hoped that they will agree by the end of this month on whether or not European firms will be subject to both European and US requirements, which are materially different in terms of reporting and clearing requirements, or some degree of equivalence can be reached.

Read More: Traders Magazine 

 
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