Industry slams 'unworkable' Esma proposals on indirect clearing

Clearing members would be forced to guarantee trades executed by their clients' clients - on terms the member firms have not agreed

Market participants have blasted European proposals designed to open up central clearing of over-the-counter derivatives to smaller firms, arguing draft rules – which require big banks to accept agreements hammered out between their clients and other derivatives users – would leave clearing members exposed to too much risk.

"The industry is in uproar about it. I'd expect it to change, but for now it's a big problem," says the head of OTC clearing at one large European bank "The key issue is that