Banks unyielding in contract talks on clearing

European buy-siders that leave clearing-contract talks too late could be told 'take it or leave it', lawyers warn

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As mandatory clearing of over-the-counter derivatives approaches, European buy-side firms are locked in contract negotiations that threaten to drastically alter their relationship with bank clearing members. Lawyers warn that buy-siders that are late in the process of agreeing terms with clearing members could end up being forced to accept unfavourable terms.

This is despite the creation of standardised documentation for client clearing under an initiative led by the International Swaps and Deri