FCMs warn EU client-clearing rules could increase risk

Emir review calls for clearing access to be 'non-discriminatory' - might mean banks have to take risky clients

europe-clearing-danger
Providers of clearing services worry that lack of clarity in new rules could force them to take on riskier clients
Infopro Digital montage

Draft rules that are designed to improve access to derivatives clearing for smaller counterparties in Europe might expose clearing members to riskier clients, banks are warning.

The rules require futures commission merchants (FCMs) to provide their services under fair, reasonable and non-discriminatory commercial terms – known as Frand. Regulators have not provided further clarification on the definition of each term, which FCMs worry could limit their ability to vet and reject clients.

“It

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Register

Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here