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Esma industry responses expose deep divisions over indirect clearing

Questions remain over who would manage a default for second or third-tier clients at a clearing house

Esma's office in Paris
Esma's office in Paris

Europe’s top markets regulator pressed pause on the implementation of its standards for indirect clearing in October. Despite allowing extra time for debate, the financial industry remains deeply divided over the best approach – not least over how to split the bill when one party leaves unexpectedly.

Indirect clearing allows firms access to central counterparty clearing houses, or CCPs, without having to go through the expense and rigour of membership, by piggybacking off another firm's membership.

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