Trading

EU set to row back on mandatory threshold for euro clearing

A quantitative clearing requirement, seen as the worst-case scenario for European banks and traders, has been dropped for now

New clearing rules could still fragment markets and increase risk, policymakers are being warned
New clearing rules could still fragment markets and increase risk, policymakers are being warned Photo: Simone Padovani/Getty Images

The European Union is set to row back on proposals to force a certain percentage of trades to be cleared in the bloc, as lawmakers agree a provisional deal on how EU firms clear euro swaps

A new rule will be introduced to the European Market Infrastructure Regulation requiring EU traders to hold an active account with a European clearing house, the European Council and Parliament said on 7 February.

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