EC finalises OTC rules, leaves key technical items to Esma

Corporate hedgers claim a victory, but details on clearing eligibility and thresholds to be tackled by new authority.

Michel Barnier, EC

The European Commission today formally published and adopted long-awaited legislation on clearing and reporting obligations for over-the-counter derivatives – bringing further relief to corporate hedgers – but market observers say the most contentious issues remain unresolved.

"It's even more high-level than we expected and by draft legislative standards, it isn't terribly comprehensive. The EC has clearly listened to the feedback that has been given by the industry, but there's an awful lot in