The approach being adopted in major international jurisdictions with regard to CCP requirements have raised concerns over possibilities of extra territorial regulatory jurisdiction leading to regulatory conflict and disruptions for market activity.
For instance, European Market Infrastructure Regulation (EMIR) and the Commodity Exchange Act (CEA) as modified by the Dodd-Frank Act contain prescriptive rules that may prevent European/US banks from participating in third-country clearing houses that have not applied for recognition by the European Securities and Markets Authority (ESMA) or that are not registered as a Derivatives Clearing Organization (DCO) as per CFTC regulations.