MiFID II: Commission adopts equivalence decision for derivatives trading venues in the United States

The European Commission has today recognised some US trading venues authorised by the Commodity Futures Trading Commission (CFTC) as eligible for compliance with the EU trading obligation for derivatives. A derivative is a financial contract linked to the fluctuation in the price of the underlying asset or basket of assets to which it refers. Today’s decision will ensure that EU counterparties can continue to trade the most liquid derivatives instruments on US platforms. Valdis Dombrovskis, Vice-President in charge of Financial Stability, Financial Services and Capital Markets Union said: “It is important that European firms can continue trading in derivatives on US markets. This is an excellent example how a safe, yet global, trading environment can be ensured in a spirit of open cooperation.” The CFTC is also working towards exempting certain EU-authorised trading venues from registration requirements in the US. This follows an agreement between the Commission and the CFTC on a common approach regarding certain derivatives trading platforms. It will enable EU platforms to offer trading services to US counterparties. See also the joint EU-CFTC announcement on mutual recognition of derivatives trading venues. Today’s decision takes the form of an implementing act, and will enter into force on the day following its publication in the Official Journal of the EU.