Mandatory central clearing has been an effective weapon in regulators’ arsenal to reduce systemic risks revealed by the financial crisis. As the US places perceived threats in the US Treasuries market between the crosshairs of an ongoing clearing reform, Europe’s rule-setters are wondering whether it’s worth doing the same.

Industry sources, however, are cautioning that a potential mandate in Europe would be eliminating a threat that appears less alarming compared to previous targets.

“Don’t use a