The European Commission determines regulatory regimes
The European Commission determines that five countries (Canada, Switzerland, South Africa, Mexico and the Republic of Korea) have the equivalent regulatory regimes for central counterparties as the European Union.
These decisions follow previous determinations of equivalence made in October 2014 for four other countries (Australia, Singapore, Japan and Hong Kong).
The European Commission today adopted five 'equivalence' decisions for the regulatory regimes for central counterparties (CCPs) in Canada, Switzerland, South Africa, Mexico and South Korea. CCPs are bodies that sit in the middle of derivatives contracts, becoming the buyer to every seller and the seller to every buyer.
The G20 has encouraged the use of CCPs since the financial crisis to reduce risk in derivatives trading.