Mandatory Swaps Clearing in EU Begins in June

Mandatory clearing in Europe for certain classes of interest rate swaps will begin in June 2016, the European Securities and Markets Authority said Dec. 2.

Mandatory clearing of interest rate swaps in the U.S. began in 2013 229 DER EE-13, 11/29/12, 229 Securities Law Daily, 11/29/12, 44 SRLR 2210, 12/3/12. Japan also requires mandatory clearing of some swaps. Required clearing of standard swaps is part of a 2009 commitment between Group of 20 countries to make derivatives trading safer and more transparent.

ESMA previously determined that certain interest rate swaps are sufficiently standardized to warrant mandatory clearing. The clearing obligation will cover several classes ...