The Hungarian presidency of the Council of the European Union last Friday handed responsibility for Europe’s key derivatives regulation to Poland, admitting that the text remains “fraught with political minefields” and “unresolved political issues”, according to a memo seen by Financial News.

The European market infrastructure regulation, which aims to increase the transparency and robustness of the over-the-counter derivatives market by pushing OTC contracts through a clearing house, will fundamentally transform the European derivatives industry, threatening existing business models.