Amendment: Clearing threshold for OTC derivative contracts

This regulation updates the financial thresholds that determine when over-the-counter (OTC) commodity and other derivative contracts must be cleared through a central counterparty. By adjusting these limits, the EU aims to ensure that the financial system remains stable and that risk management practices keep pace with market changes.

This primarily affects large financial institutions and investment firms trading in derivatives. It changes the volume of trades they can hold before they are legally required to use a clearing house to reduce systemic risk.