In a year end move to avert market disruption prior to the date of MiFID II implementation, and deal on US EU venue equivalence was finally reached.
The European Union said banks and other traders in the bloc can use U.S. platforms to comply with MiFID II restrictions on derivatives, as policy makers moved to prevent a rupture in the $542 trillion global market less than a month before the EU law kicks in. The decision...by the European Commission, the EU’s executive arm, is intended to smooth the start of MiFID II and follows an agreement with U.S. authorities to coordinate oversight of the market. The Commodity Futures Trading Commission, the primary U.S. derivatives regulator, plans to exempt multilateral and organized trading facilities authorized in the EU from U.S. registration requirements, according to the statement. That will allow U.S. traders to use the European platforms to comply with U.S. Dodd-Frank Act trading requirements.