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

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Providers of clearing services worry that lack of clarity in new rules could force them to take on riskier clients
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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

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