European buy-side firms face clearing crunch

Large buy-side firms will be subject to Europe’s clearing mandate from December 21, but their smaller peers risk being left behind

A clear run: larger buy-side clearers may have an easier ride than their smaller contemporaries

December 21 marks the winter solstice, the shortest day of the year in the northern hemisphere – preceded by the darkest and longest night. Europe's largest fund managers – who will need to begin clearing the bulk of their over-the-counter derivatives trades on the same day – can sleep easy, with few issues predicted in meeting the deadline, but their smaller peers may not be so lucky when they become subject to the mandate in six months' time.

Clearing providers and clients agree that smaller