Dealers baulk at new SME derivatives rules

Priips to force banks to publish cost analysis of corporate trades

Derivatives are often seen as the preserve of sophisticated financial institutions and large corporations. Yet small and medium-sized enterprises (SMEs) use these tools to regulate their cashflows and hedge against future turbulence in their rates or foreign exchange exposures.

These companies often use derivatives to hedge forex flows or the interest rate component of their loans, for instance. But proposed European regulation may treat these instruments in the same way as retail structured