Key facts
- European firms are complying with onshore derivatives clearing rules.
- Larger European firms are relocating business volumes into the EU slower than smaller firms.
- The European Securities and Markets Authority (Esma) is a key regulator observing this trend.
- Significant business volumes are involved in the relocation process.
- The pace of migration varies by firm size.
European firms are adhering to onshore derivatives clearing mandates, though a significant disparity exists in the speed at which larger financial players are relocating their business volumes into the European Union compared to smaller entities. This observation comes from the European Securities and Markets Authority (Esma), a key regulatory body overseeing the bloc's financial markets. Esma's findings suggest that while the general trend is towards compliance with the rules, the migration of substantial derivatives clearing activities into the EU is progressing at a slower pace for larger institutions. This could imply that a greater proportion of significant business volumes from these larger firms may still be handled outside the EU's regulatory perimeter. The implications of this slower relocation by larger firms are not fully detailed but could point to a continued concentration of certain financial risks within the EU or, conversely, a slower integration of these activities into the EU's supervised market infrastructure. The report highlights a nuanced picture of compliance, where the size of the firm appears to be a determining factor in the speed of relocation.