| Author (Person) | Grant, Jeremy, Tait, Nikki |
|---|---|
| Series Title | Financial Times |
| Series Details | 13.9.10 |
| Publication Date | 13/09/2010 |
| Content Type | News |
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As part of its ongoing work in creating a sounder financial system, the European Commission has tabled on the 15 September 2010 a proposal for a regulation aimed at bringing more safety and more transparency to the over-the-counter (OTC) derivatives market. In its draft regulation, the Commission proposed that information on OTC derivative contracts should be reported to trade repositories and be accessible to supervisory authorities. More information will also be made available to all market participants. The Commission also proposed that standard OTC derivative contracts be cleared through central counterparties (CCPs). This will reduce counterparty credit risk, i.e. the risk that one party to the contract defaults. The Commission's proposal, fully in line with the EU's G20 commitments and the approach adopted by the United States, now passes to the European Parliament and the EU Member States for consideration. Once adopted, the regulation would apply from end 2012. |
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| Subject Categories | Business and Industry, Internal Markets |
| Countries / Regions | Europe |
