European politicians row over scope of Emir

A political squabble has broken out over the scope of Europe’s new market infrastructure regulation, known as Emir. The Council of the European Union has proposed extending the scope of the rules to cover all derivatives, as opposed to just over-the-counter trades – a stance enthusiastically endorsed by certain members of the European Parliament.

The reason for the expansion, say advocates, is to stamp out a potential loophole that would essentially allow market participants to trade OTC