BoA Merrill Lynch speaks out on new clearing rules

Author: Gemma Varriale | Published: 13 Feb 2012

With growing concern about the possibility of a liquidity squeeze, market participants have called for gradual phase-in of clearing obligations as a priority for Emir (European Market Infrastructure Regulation).
"To have numerous market participants trying to sign up clearing documentation with clearing houses, struggling to find collateral for uncleared trades, and to margin cleared trades is going to cause serious log jam," said Kate Lamburn, solicitor with Bank of America Merrill Lynch.
Although a...