ESMA Says EU Third-Country Rules Must Be Overhauled

The transcript discusses the concept of equivalence in financial regulation, particularly in the context of Brexit and its impact on the EU and UK financial markets. It explores the challenges of maintaining market stability and oversight when clearing occurs outside the EU, such as in London or the US. The discussion also touches on potential regulatory changes in the US and their implications for European markets, emphasizing the need for robust supervision and the challenges of relying on home country regulators.

In what ways might the European Central Bank's actions affect the clearing of euro derivatives post-Brexit?

What are the key risks associated with third country CCPs in the EU?

How might changes in US regulation impact European financial markets?