John McPartland and Rebecca Lewis
It has been posited that because central counterparties (CCPs) that clear European securities have established successful interoperability arrangements, European CCPs that clear derivatives contracts should be required to enter into similar interoperability arrangements. The premise is that doing so would potentially foster competition among derivatives CCPs and ideally, would tend to weaken the one to one relationship between a derivatives trading venue and its exclusive CCP. This paper challenges the plausibility of this concept on its daunting operational challenges rather than from a public policy perspective.
The full paper is available at https://www.chicagofed.org/~/media/others/people/research-resources/mcpartland-john/the-challenges-of-derivatives-ccp-interoperability-32416-pdf.pdf?la=en