Europe’s top markets regulator has launched a consultation over the way collateral is collected at clearing houses – a definitive step towards resolving a long-running disagreement over the way the EU and US govern these institutions.

The European Securities and Markets Authority issued a consultation on December 14 on plans to allow collateral posted at EU clearing houses to cover a one-day period of risk. European clearing houses currently operate a two-day period of risk, which puts them at odds with their counterparts in the US.