The European Commission today published its long-awaited report aimed at shaking up the over-the-counter derivatives market. The report advocates that clearing "grow substantially to cover large parts of OTC derivatives”, but stopped short of calling for trades to be forced onto exchanges. Financial News summarises the main points.

• Central clearing is the most effective way of reducing credit risk and is broadly feasible in all market segments. Clearing can grow substantially to cover large parts of OTC derivatives, although it cannot apply to all contracts.