AIMA Wants Changes To EU OTC Derivatives Rules

May 23 2011 | 12:26pm ET

Proposed EU regulations for over-the-counter derivatives could erect new barriers to international clearing, says a hedge fund lobby group.

The Alternative Investment Management Association, counting 1,200 members from the global hedge fund industry, wants EU lawmakers to reconsider a provision of the European Market Infrastructure Regulation which it argues could effectively exclude EU-established financial services providers from using central counterparties not based in the EU.

Under the terms of the EP draft text, a third-country CCP would only be permitted to provide clearing services to EU entities if those entities obtained an authorization in each individual EU member state. Furthermore, the third-country CCP would only be allowed to obtain such an authorization if the European Commission recognized that the legal and supervisory arrangements of its home jurisdiction were “equivalent” to those contained within EMIR.
 
AIMA believes it could be difficult for many third countries and their CCPs to meet these criteria given the differences between the requirements on CCPs, clearing members and clients.
 
Said AIMA CEO Andrew Baker: “AIMA is supportive of open international markets and opposes measures which could result in the erection of unjustifiable barriers to international trade. We believe it is important that, in particular, counterparties in the European Union and the US can still trade freely and use each other’s financial services. We believe that it is important that the international nature of the OTC derivatives market is maintained and that any unnecessary restrictions on international trading are avoided."

The EP’s economic and monetary affairs committee is scheduled to vote on the issue on May 24.


In Depth

High Time For A Cannabis Hedge Fund?

Sep 30 2014 | 7:07am ET

Launching a hedge fund is always a gamble, but Leslie Bocskor's decision to launch...

Lifestyle

Griffin Donates $1M To Rauner's Illinois Gov. Campaign

Sep 22 2014 | 9:29am ET

Hedge fund billionaire Kenneth Griffin definitely has a dog in this fight. The Citadel...

Guest Contributor

Appraisal Ratio Key To Evaluating Hedge Funds And Other New Investments

Sep 29 2014 | 3:07pm ET

As a former finance professor Peter Hecht experiences heartburn every time he hears...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    Sep 30 2014 | 9:29am ET

    The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…

 

Futures Magazine

September 2014 Cover

High frequency market making

High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.