Esma buys time to fix broken client clearing chains

Two-year clearing delay for small firms might allow indirect model to be built

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A proposed two-year delay to the phase-in of European Union clearing obligations for smaller firms will not solve the fundamental problems with the market, but may provide time to develop a solution, clearing experts suggest. Small firms have not started clearing voluntarily, and there are growing fears they will struggle to find a clearing provider.

"I'm not really surprised by this – the clearing brokers are getting crushed by the leverage ratio and soon-to-arrive net stable funding ratio, so

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