FIA welcomes the European Commission’s market integration and supervision package (MISP), which forms a central pillar of the EU’s Savings and Investments Union (SIU) agenda and aims to strengthen the integration, resilience and global competitiveness of EU capital markets.
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The paper highlights the need for 24/7 clearing and risk management to accompany 24/7 trading, ensuring sufficient liquidity in the markets, considering operational risk and utilising existing market principles and regulations to provide a roadmap.
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FIA has responded in support of the Financial Conduct Authority’s proposal to increase the clearing threshold for commodity derivatives. Raising the clearing threshold is an important and urgent corrective measure.
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FIA agrees with the Options Clearing Corporation’s objective to better align clearing fund contributions with the stress exposures that drive its sizing and views the proposal as broadly consistent with international central counterparty practices.
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The response outlines proposals for a better rulemaking process in the EU and lists examples where an unlevel playing field between EU banks and global competitors has been identified.