The European Commission headquarters in Brussels on January 5, 2015. AFP PHOTO / EMMANUEL DUNAND
Your feedback is important to us!
We invite all our readers to share with us their views and comments about this article.
Disclaimer: Comments submitted by third parties on this site are the sole responsibility of the individual(s) whose content is submitted. The Daily Star accepts no responsibility for the content of comment(s), including, without limitation, any error, omission or inaccuracy therein. Please note that your email address will NOT appear on the site.
Alert: If you are facing problems with posting comments, please note that you must verify your email with Disqus prior to posting a comment. follow this link to make sure your account meets the requirements. (http://bit.ly/vDisqus)
Banks and investors in the European Union will have to send trades of some interest-rate swaps to a third party under new rules intended to make financial markets safer.Banks have traditionally traded interest-rate swaps between themselves in over-the-counter, or off-exchange, transactions. By redirecting these transactions to a clearinghouse, the derivatives market should become safer. The commission has made clearing compulsory for plain vanilla interest-rate derivatives, basis swaps, forward-rate agreements and overnight index swaps traded within the EU.LCH.Clearnet Ltd. is the largest clearinghouse for swaps. The subsidiary of the London Stock Exchange Group Plc has 90 percent of the overall market for swap clearing and a 70 to 80 percent share of clearing for end clients, according to Nathan Ondyak, the firm's head of products and markets.
FOLLOW THIS ARTICLE