Kenan Maciel pointed out to me that it is “option 3” in his article for the FiX that best describes the EU rules on OTC derivatives that were released on Wednesday – that of reporting trades to repositories and central clearing for standardized derivatives.
But it is still unclear to me whether, under the European regulations, FX swaps come under the heading of derivatives. Yesterday’s press release actually defines a derivative as “a contract between two parties linked to the future value or status of the underlying to which it refers (eg, the development of interest rates or of a currency value, or the possible bankruptcy of a debtor).”
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