The struggle for consensus on European clearing addendum

The move to central clearing poses a huge documentation challenge. A standard template has been developed for European derivatives users – but will this solve the problem? By Duncan Wood and Lukas Becker

For nearly a year, every Monday afternoon has been blocked out in the calendars of many European derivatives lawyers. Each week, two groups – one representing the largest dealers and the other involving 25 or so buy-side firms – would hold separate calls to decide on their strategies. The two sides would then square up in a joint conference call between 3pm and 6pm.

Their purpose has been to settle on a new clearing agreement for Europe, which would form a standard template for clearing members