European OTC clearing documentation faces delay
Complications over close-out mechanisms and segregation models will delay the European addendum by up to three months, say dealers
The publication of a standard legal contract for over-the-counter derivatives clearing in Europe will be delayed by up to three months, dealers say. Banks, buy-side firms and central counterparties (CCPs) are struggling to find a common stance on close-out mechanisms, Europe's diverse segregation models and how to tackle the region's varying legal regimes.
The addendum – which will be attached to futures agreements or to International Swaps and Derivatives Association master agreements – was due
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