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Listed derivatives face MiFID II clearing threat 

March 13, 2015

Helen Bartholomew, International Financing Review

As much as half of the exchange traded derivatives market is under threat from proposed regulation that would prevent clients from accessing futures and options trades without a direct clearing broker relationship.

Indirect clearing, which enables derivatives users to access clearing houses by facing a client of a clearing broker rather than the broker itself, is set to be overhauled in an attempt to boost client protection via the second version of the Markets in Financial Instruments Directive, due to be implemented in 2017.

But market participants believe that regulatory attempts to standardise the treatment of positions and collateral in the event of a bankruptcy in the indirect clearing chain could jeopardise access to key financial markets.

Read More: International Financing Review

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