Reuters: EU to ease derivatives rules, holds fire on euro clearing changes

The burden of new regulation for derivatives markets would be eased and competition increased under proposals from the European Union’s executive, a document seen by Reuters showed, which omitted any moves to curb euro clearing in Britain after Brexit.

Under the plans, which bankers expect the European Commission to publish next Wednesday, pension funds would be given a further three year exemption from an obligation to clear their derivatives trades, avoiding a need to tie up billions of euros in collateral to back transactions.

“The proposed modifications will reduce compliance costs and the burden imposed on market participants,” a draft of the proposals seen by Reuters said.

Banking industry officials said attempts to potentially curb clearing of euro-denominated contracts in Britain after Brexit has been put back to at least the end of June – well after the UK general election.

The EU Commission had no comment on the document or on the discussion of euro clearing.

The full article is available at

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