The EU Commission has launched a consultation on the expansion of clearing services across the EU. In our response to this consultation, we advocate further improvement on the clearing infrastructure in the European Union. One means would be to require clearing members/participants to maintain an active account with a central counterparty located in the EU.
In addition, the demand for clearing services would increase if public financial counterparties, such as central banks, were also subject to the clearing obligation. Existing clearing exemptions for non-financial companies must not be softened, however, because otherwise companies would have to provide liquidity for clearing, which would then no longer be available for investment.