Market access

EU Expands Market Access for US Clearers and Derivatives Exchanges | Investment News

LONDON (Reuters) – The European Union said on Monday it had widened access to U.S. stock exchanges and clearinghouses for investors in the bloc, a move that contrasts with Brussels’ intention to shut down clearinghouses in London in 2025.

The EU’s executive European Commission has said that a number of exchanges in the United States that trade in derivatives and are supervised by the United States Securities and Exchange Commission can now be used by investors from the United States. EU.

It also expanded EU market access for US clearing houses, also known as central counterparties or CCPs, to allow EU investors to clear US products such as mortgage-backed securities. .

“These decisions are in the interest of the EU – we want our capital markets to be better integrated with other international markets,” EU Financial Services Commissioner Mairead McGuinness said in a statement.

“We look forward to continued good cooperation between EU institutions and agencies and the US Securities and Exchange Commission,” McGuinness said.

The bloc’s securities watchdog, ESMA, will carry out the technical work necessary to implement the rulings.

McGuinness said Britain’s clearinghouses, which left the EU, will not be allowed to continue serving bloc clients after June 2025 under the same “equivalence” scheme she granted to banks on Monday. US clearers and exchanges.

Brussels has said it wants to end the bloc’s heavy reliance on derivatives clearers in London.

(Reporting by Huw Jones; Editing by Hugh Lawson)

Copyright 2022 Thomson Reuters.