Europe should brace for U.S. Treasury clearing rules, says industry body

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Europe should brace for U.S. Treasury clearing rules, says industry body

LONDON - Europe has nowhere to hide from U.S. plans to mandate clearing of U.S. Treasuries transactions that will need to be carefully introduced over time, a global derivatives industry body said on Tuesday.

Regulators began mandating the use of clearing more widely in derivatives markets after the global financial crisis in 2008 to improve stability and transparency. "It's something that you need to look at carefully and at this stage I think we still have more questions than answers as to how the actual process of clearing Treasury cash and Treasury repo will play out," Litvack said.

"I don't want to do a 'sky is falling' here, but we do want to make sure the timetable suits the implementation challenge," O'Malia said.

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