Icap European Sef Faces Axe as US, EU Reach Equivalence Deal

December 07, 2017

Nihal Patel comments on mutual recognition of trading venues by European Union and US regulators, agreed on December 5, which could spell the end for TP Icap’s dual-registered swap execution facility in Europe.

An excerpt from "Icap European Sef Faces Axe as US, EU Reach Equivalence Deal," Risk, December 7, 2017: 

But a dual-registered Sef is probably no longer necessary, says Nihal Patel, a lawyer at Cadwalader, Wickersham & Taft: “Icap’s thinking [in 2014] was probably this: if we go ahead and register in both jurisdictions, if we swallow the pill that is the CFTC regulation, it may give us an advantage over our competitors. I can see that they may have put themselves in a unique position to offer services to customers in both the EU and the US.

“The reasons [IGDL] might have registered in the past with both regulators may disappear now, if a clear equivalence determination is provided. There isn’t much benefit to being registered and regulated on two sides if both sides are saying one or the other is good enough.”