Buy-side experts worried that mandatory active accounts for EU clearing could increase systemic risks, not lower them

EFAMA organized a webinar featuring prominent buy-side clearing experts who discussed EFAMA’s analysis on mandated active accounts for EU clearing (eventid=21774).
Buy-side experts are expressing worries about the potential risks associated with mandatory active accounts for EU clearing. They argue that such a requirement could actually increase systemic risks rather than reduce them.
They further argue for organic growth of EU CCPs and attracting global clearing flows instead of creating a monopoly. They highlight potential issues such as wider basis and liquidity pressures, challenges in achieving best execution, and discrimination against clients. The absence of a comprehensive impact assessment and the possibility of liquidity pool fragmentation are also areas of concern. Active accounts would impose additional costs for accessing new liquidity on EU CCPs.