Unclear on clearing in Germany

A requirement to clear standardised derivatives in Europe by next year creates problems for Germany’s banking sector. Uncertainties in the rules for indirect clearing, as well as whether there will be any benefit in an exemption for intra-group trades, are obstructing preparations. By Ramya Jaidev

In an ideal world, derivatives users would spend the next few months applying the finishing touches to their plans to adopt central clearing. The final version of the European Market Infrastructure Regulation (Emir) was agreed in March, and legislators are determined mandatory clearing for certain standardised over-the-counter derivatives should come into force next year. In reality, there are plenty of things holding participants back – not least, the fact that crucial technical standards are