Derivatives: EU-US split here to stay, exchange heads fear - by Tom Osborn

European and US derivatives regulation will remain split for years to come, potentially limiting competition and threatening liquidity, according to the heads of two major exchanges.

Speaking today at the Futures Industry Association's IDX conference in London, Andreas Preuss, chief executive of Eurex, warned that twin-speed market reforms – and conflicting national priorities – are making it harder for exchanges and clearing houses to reach customers on both sides of the  Atlantic.

"We have, and will continue to have for years to come, an asymmetry in regulation between the United States and Europe. The asymmetry has implications for market accessibility... [look at] how complicated it is for a European exchange or clearing house to set up their business in the US," said Preuss.

Dealers and clearing houses alike have railed against the implementation of differing and sometimes conflicting derivatives rules by national authorities. As one example, US stipulations on the protection of customer collateral could prevent contracts executed on US venues from being cleared in London, as is the case for several hundred Ice-listed energy futures.

Read more: EU-US split here to stay, exchange heads fear - Risk.net