Late EU clearing house recognition spooks dealers

Dealers headquartered in the European Union face an anxious wait over whether the EU will grant equivalence to clearing houses in several third countries before a June 28 deadline. On that date, clearing members will face a sharp rise in capital requirements on exposures to any central counterparty (CCP) that has not been recognised by the European Commission.

In June 2021, the EC extended the deadline for third-country clearing houses to receive qualifying CCP (QCCP) status under the European