Industry experts question whether frontloading is a necessary part of forthcoming European regulations
Industry experts are questioning whether frontloading is a
necessary part of forthcoming European clearing regulations,
suggesting the decision to delay the requirements earlier this
week may not suffice, writes Jonathan Watkins.
The European Securities and Markets Authority (Esma) has
recommended the mandatory clearing of certain OTC trades be
delayed, possibly until around November this year.
Industry experts have told FOW however, that concerns still
surround this introduction of frontloading relating to price
differentials, valuations and operational risk.
With market participants growing increasingly concerned
about the rules, some believe it should be scrapped
"Frontloading caused a lot of speculation and you could
argue that it’s not needed at all," said Hans-Ole
Jochumsen, executive vice president, global market services for
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