Good to see that the EU Commission has finally granted equivalence to the UK CCP for a further three years. 

This is a helpful development and has been called for by the industry in strong terms. It reflects the reality that it is in both the UK and EU’s interests to create stability and has been welcomed by the Bank of England. 

However, it is important not to ignore the broader picture. 

The underlying desire to get more clearing into the EU as reflected in the EMIR 3 requirements has not gone away. On the contrary, these requirements remain and we have yet to see the reality of the active account and other requirements. So to be clear, this is a tactical delay and no more from the EU’s perspective. 

From a broader perspective, I do query if either the EU or UK have fully factored in the new reality of US regulation under the new administration. 

The bigger story is surely not the competition between the EU and UK but that with the US markets. And in the clearing space, there are a number of issues to think about not least the US Treasury clearing mandate where several trade bodies are already calling for an extension of the implementation dates for the clearing rule by, at a minimum, 12 months.