Corentine Poilvet-Clediere, Julien JardelotFrom: Clearing OTC Derivatives in Europe
Edited By: Bas Zebregs, Victor de Seriere, Rezah Stegeman, Patrick Pearson
This chapter studies the concept of non-discriminatory access or ‘open access’, which is widely recognized as beneficiary in the European Union (EU), not only in consideration of the fragmentation of EU capital markets but also in the introduction of clearing and trading obligations. It begins by tracing the origins of the concept, its implications, and how it works in practice. The chapter then looks into the expected benefits in terms of transparency, efficiency, innovation, settlement, and competition. Open access has proven to ‘open up’ barriers and enhance competition in the EU financial market infrastructure space without substantiated concerns to financial stability but quite the opposite, having a diversity of trading, clearing, and settlement venues available to market participants ensuring alternative choices and an overall increased resilience of the system. While it is established in equities and OTC derivatives, the concept of open access remains controversial when it comes to exchange traded derivatives, where it has never been applied in practice despite effectively entering into application.