Covered bonds get carve-out in draft EU clearing rules

Issuers pleased as Esma proposes exemption for covered bond hedges

EU flag

European regulators today proposed a clearing carve-out for covered bond derivatives, so long as six conditions are satisfied - potentially ending issuers' long-running fears that they would be required to clear their trades. The covered bond industry had agued it would be difficult or impossible to make initial and variation margin payments if it was caught by the clearing regime.

The six conditions mirror those set out in draft margining rules for non-cleared trades in April, so are not a huge

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: