More clarity needed over commodities clearing in Europe

Not yet in the clear

Commodities clearing in Europe

All signs point towards the growing trend of a majority-cleared over-the-counter commodity derivatives market, as European regulators follow the Group of 20's (G-20) mandate calling for all standardised OTC derivatives contracts "to be traded on exchanges or electronic trading platforms, where appropriate, and cleared through central counterparties by end-2012 at latest. Non-centrally cleared contracts should be subject to higher capital requirements".1 According to a presentation by the Fede