Derivatives clearing to be introduced in July

The European Commission announced yesterday that credit default swaps will be cleared centrally from July. Regulators have been working with the industry to boost transparency and reduce risks in trading the instruments.

The International Swaps and Derivatives Association and the European Banking Federation have agreed to commit to a central clearer for products traded in the European Union.

Charlie McCreevy, the EU's Internal Market Commissioner, said he was considering whether other measures could be needed to make sure derivatives "are adequately supervised and do not pose unnecessary risks to the financial markets."