Esma backtracks on indirect clearing

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Controversial proposals that would have made it compulsory for clearing members to offer untested indirect clearing services in over-the-counter derivatives markets have been overhauled after banks condemned them as "unworkable".

The new rules are part of a package of final technical standards published yesterday by the European Securities and Markets Authority (Esma) – they add detail to Europe's new derivatives clearing and reporting legislation, the European Market Infrastructure Regulation (