ALFI responds to the EU Commission on the consultation on the review of the central clearing framework

We are happy to contemplate a revisited Clearing framework in light of the European Commission’s agenda. Nevertheless, the key decision driver to choose a CCP, will always remain competitiveness, based in particular on service prices, regulatory obligations (e.g., reporting), and risks aspects. Sufficient liquidity is also an item for consideration, but as a side stake as intrinsically linked to service pricing and venue competitiveness.

If an EU CCP is not able to provide a sufficiently competitive offer, there is a strong likelihood that clearing would be relocated to other third-country jurisdictions, like the US.

View the ALFI response.