FIA’s submission to the European Commission’s targeted consultation on EU banking sector competitiveness argues that regulators should reassess the cumulative impact of post‑crisis reforms on EU banks, especially those providing derivatives clearing services. It stresses that central clearing (implemented in the EU mainly via EMIR) supports financial stability by reducing counterparty credit risk, improving netting efficiencies, and lowering settlement failures—so maintaining sufficient clearing capacity is critical.
FIA notes that EU clearing banks face both bank prudential rules (CRR/CRD) and wider market regulation, and urges closer coordination between prudential and market authorities to keep the framework proportionate and internationally competitive.
The paper proposes improvements to EU rulemaking (clear scope and territoriality, more principles‑based drafting, better transition periods, avoiding “two‑step” compliance, and early cost/benefit and jurisdictional comparisons). It highlights competitive disadvantages for EU banks, including the EBA’s interpretation of CRR Articles 305/306 for indirect clearing, the proposed EU interim crypto prudential regime, EMIR Article 7d reporting, and potential recalibrations of EMIR 3’s Active Account Requirement.
FIA also recommends delinking QCCP status under CRR from EMIR Article 25 recognition, seeking equal G‑SIB treatment of principal vs agency clearing models, and permanently excluding central bank reserves from the leverage ratio exposure measure.
Read the response in full.
