Derivatives clearing houses in the EU
Produced in partnership with Assia Damianova of Cadwalader Wickersham & Taft
Derivatives clearing houses in the EU

The following Banking & Finance guidance note Produced in partnership with Assia Damianova of Cadwalader Wickersham & Taft provides comprehensive and up to date legal information covering:

  • Derivatives clearing houses in the EU
  • What is a clearing house?
  • Clearing participants
  • Client clearing
  • Clearing models
  • EMIR requirements for CCPs
  • EACH
  • Recovery and resolution—EU proposed rules on failure of clearing houses
  • Brexit

BREXIT: As of 31 January 2020, the UK is no longer an EU Member State, but has entered an implementation period during which it continues to be treated by the EU as a Member State for many purposes. As a third country, the UK can no longer participate in the EU’s political institutions, agencies, offices, bodies and governance structures (except to the limited extent agreed), but the UK must continue to adhere to its obligations under EU law (including EU treaties, legislation, principles and international agreements) and submit to the continuing jurisdiction of the Court of Justice of the European Union in accordance with the transitional arrangements in Part 4 of the Withdrawal Agreement. For further reading, see: Brexit—introduction to the Withdrawal Agreement. This has an impact on this Practice Note. For guidance, see Practice Note: Brexit—impact on finance transactions—Key issues for derivatives transactions and Brexit—impact on finance transactions—Derivatives and debt capital markets transactions—key SIs.

What is a clearing house?

The clearing obligation under the European Markets Infrastructure Regulation (EU) No 648/2012 (EMIR) refers to a requirement that all eligible derivatives be cleared through a central counterparty (or simply, a clearing house), a 'CCP').

For more information on the clearing obligation, see Practice Notes: Clearing obligation and Clearing obligations: central clearing process and the role of clearing houses. EMIR has