Bank of New York Mellon plans to close its European derivatives clearing business because the implementation of European clearing rules has stalled.
BNY Mellon had closed its U.S. derivatives clearing business last December because of regulatory and financial reasons. With the closing in Europe, the company no longer will offer derivatives clearing, said a BNY Mellon statement.
“Specifically, (European Market Infrastructure Regulation) mandatory clearing has been pushed back to late 2015 or early 2016, delaying the expected expansion of the over-the-counter clearing business, which was a key element of our derivatives clearing strategy,” the statement said.
EMIR had been expected to be implemented this year; it would require OTC derivatives to be cleared through central counterparties.
BNY Mellon's European derivatives clearing business will be wound down over the next several months.