Regulation

EU mandates ‘portion’ of clearing must be done through European clearing houses

The new rules proposed by the commission will change where EU banks can clear euro-denominated derivatives

According to the European commission, 91% of all euro-denominated interest rate swaps were cleared through UK clearing houses
According to the European commission, 91% of all euro-denominated interest rate swaps were cleared through UK clearing houses Photo: Daniel Leal/Getty Images

EU firms will have to clear a portion of their euro-denominated derivatives through European clearing houses under draft proposals published 7 December, as Brussels looks to win back business from London after Brexit.

The European Commission proposals did not specify how much clearing would need to be done in EU clearing houses, leaving the European Securities and Markets Authority to determine a minimum level.

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