Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesBotsEarnCopy
U.K. to Continue Clearing EU Derivatives Trades Until 2028

U.K. to Continue Clearing EU Derivatives Trades Until 2028

CoinspaidmediaCoinspaidmedia2025/01/29 03:22
By:Coinspaidmedia

The European Union plans to extend its collaboration with U.K.-based clearinghouses, allowing them to process derivatives trades on the European market until 2028.

U.K. to Continue Clearing EU Derivatives Trades Until 2028 image 0

The European Commission proposed extending the authorization for clearing EU trades through U.K.-based firms until 2028. Initially, this collaboration was expected to end by June 30, 2025, according to Financial Times.

U.K. clearinghouses currently process approximately $3.5 trillion in daily derivatives trades, with the bulk handled by the London Clearing House (LCH) and Intercontinental Exchange (ICE).

Olof Gill, European Commission Spokesperson for Economic Security, Trade, Financial Services, and Customs, stated that the initiative’s primary objective is to ensure financial stability, a critical prerequisite for the development of the Savings and Investments Union (SIU), which aims to establish a unified financing market within the EU. Gill also highlighted that LCH and ICE are systemically important for the EU’s financial stability.

EU member states have five days to contest the European Commission’s proposal. However, experts believe it’s unlikely, as the EU lacks the necessary infrastructure to handle the volume of transactions currently processed by the U.K.’s central counterparties (CCP).

In February 2024, the European Parliament and the EU Council reached a preliminary agreement on a clearing package intended to reduce the bloc’s reliance on U.K. clearinghouses and strengthen Europe’s internal capital market. However, the initiative stalled, leaving U.K. clearinghouses as a systemic pillar of the EU derivatives market.

In May 2024, U.S. traders in traditional financial markets gained access to cryptocurrency derivatives launched on the Chicago Board Options Exchange (Cboe).

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

Trump turns on ‘buddy’ Putin over Ukraine, says he’ll slap Russia with sanctions now

Share link:In this post: Trump warned he may hit Russia with new sanctions after fresh missile attacks on civilians. Trump met with Zelenskyy in Rome and called the meeting productive, but gave no full details. Trump offered a peace deal that includes recognizing Crimea as Russian territory, which Zelenskyy rejected.

Cryptopolitan2025/04/26 21:12

Trump’s economic and geopolitical failures took center stage at Pope Francis’ funeral

Share link:In this post: Trump’s economic and diplomatic tensions took over the spotlight at Pope Francis’ funeral. Trump met briefly with Zelenskyy, Macron, and Starmer during the service but made little progress. Trump skipped a second meeting with Zelenskyy and left Rome quickly after the Mass.

Cryptopolitan2025/04/26 21:12
Trump’s economic and geopolitical failures took center stage at Pope Francis’ funeral

Elon Musk and Nobel laureates call for investigation into OpenAI’s nonprofit mission

Share link:In this post: Elon Musk called OpenAI restructuring plan the “scam of the century” after experts oppose it. Legal and AI experts have called on Attorneys General of Delaware and California to OpenAI core mission as a non-profit. Concerns about Open AI deviating from its non-profit origins is not limited to Musk.

Cryptopolitan2025/04/26 21:12
Elon Musk and Nobel laureates call for investigation into OpenAI’s nonprofit mission