The Commodity Futures Trading Commission (Commission) has issued an Order with respect to the multilateral clearing activities that Eurex Clearing AG (Eurex) intends to undertake in the United States for over-the-counter (OTC) derivative instruments.
Eurex is a central counterparty licensed by the Bundesanstalt für Finanzdienstleistungaufsicht (BaFin) of the Federal Republic of Germany. In the Order, the Commission determined that the supervision that BaFin, in conjunction with Deutsche Bundesbank, provides with respect to the multilateral clearing activities of Eurex satisfies appropriate standards within the meaning of Section 409(b)(3) of the Federal Deposit Insurance Corporation Improvement Act. Accordingly, the Order permits Eurex to operate a multilateral clearing organization for the clearing of OTC derivative instruments in the United States. BaFin and the Commission have entered into agreements providing for the sharing of information regarding the clearing activities of Eurex.
This Order is the fourth action that the Commission has taken on the basis of Section 409(b)(3) of FDICIA, which was added by the Commodity Futures Modernization Act of 2000 (CFMA). Section 409 provides that an MCO for over-the-counter derivative instruments, such as Eurex, may operate in the United States if, among other alternatives, the MCO is supervised by a foreign financial regulator that the Commission, or one of several other United States financial regulators, has determined satisfies appropriate standards.