Esma frontloading fix leaves risks, dealers warn

UK MEP Bowles hoping for "constructive response" from EC

New plans to remove the pricing uncertainty arising from one element of Europe's over-the-counter derivatives clearing regime appear to be only a partial success, according to dealers, who claim questions would remain – particularly in the event of a client defaulting before the regime takes effect.

"There's still risk – that's my gut reaction," says a London-based head of OTC clearing at one European bank. "Does it solve all the problems? No. Does it solve some of them? Yes."

Mark Croxon