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Europe retreats in US derivatives battle

Regulator recommends that one-day margin periods are acceptable in nod to US method that had caused problems with EU

The US appears to have won its battle with Europe over the clearing margins
The US appears to have won its battle with Europe over the clearing margins

Europe's markets regulator has issued its final report on how much margin is required to be posted at clearing houses for derivatives trades – and has come down in favour of a US approach that was heavily contested for years.

In the final report issued on April 5, the European Securities and Markets Authority said that it has recommended that a clearing house should have a margin sufficient to cover one day of open positions, retreating from its previous stance that two days' worth of margin was required.

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