Preparations for buy-side clearing of OTC derivatives falling behind schedule

Into the unknown

clearing and settlement

Change is always disruptive and the move to central clearing of over-the-counter derivatives is no exception.

Few expected a smooth ride. But with only weeks to go before the reforms come into force in the US, the buy-side is still in the dark about a range of issues. Preparations for clearing have fallen behind schedule.

On November 28 last year the Commodity Futures Trading Commission (CFTC) issued its final rules for the phased implementation of mandatory clearing for interest rate swaps in fo