Langen report: clearing rules will only apply to new trades

European Parliament calls for existing derivatives trades to be excluded from clearing rules, but proposes wider exemptions for public-sector bodies

Derivatives dealers appear to have avoided a requirement to back-load outstanding trades into central counterparties (CCPs) – an idea that panicked the industry after it was proposed by influential European Parliament member Werner Langen at a meeting of the parliament's Economic and Monetary Affairs committee (Econ) on February 1.

Banks argued the move would compel them to revalue large swaths of their portfolios and create a vast, unforeseen cost for clients by suddenly requiring them to start