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

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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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