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Mandatory clearing on the way for EU interest rate derivatives trades 

August 11, 2015


New rules requiring trading of some interest rate derivatives to take place through certain types of counterparty will be phased in over the next three years, the European Commission has announced.

The rules fulfil an international agreement to improve transparency and minimise the risks involved when trading over the counter (OTC), or privately traded, derivatives, which dates back to 2009. Similar clearing requirements are already in place in the US and Japan.

EU financial services commissioner Jonathan Hill said that the Commission had taken “a significant step to implement our G20 commitments, strengthen financial stability and boost market confidence” with the new rules. “This is also part of our move towards markets that are fair, open and transparent,” he said.

Read more: Out-Law

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