Clearing back-loading provision removed from latest EU Council text
Provisional back-loading clause is removed because of logistical challenges
The Council of the European Union has decided to shelve a provisional requirement to back-load trades into central counterparties (CCPs) – a condition that could have compelled dealers to revalue large swaths of their portfolios and create a vast, unforeseen cost for clients by suddenly requiring them to start posting margin.
The council has instead opted to impose the clearing obligation for trades transacted on or after the date the regulation comes into force, bringing its thinking into line
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