EU announces derivatives trading crackdown
The European Commission has outlined its plans for tougher regulation of over-the-counter (OTC) derivatives trading.
Under the proposals, OTC derivatives - which are traded off-exchange between two parties - will be processed through clearing houses, while contracts relating to the deals have to be reported to trade depositaries.
This information will then be made available to regulators when required, reports the Financial Times.
Michel Barnier, internal market commissioner for the EU, said the aim of the regulation is to stop OTC derivatives trading being a "wild west territory".
"We are proposing rules which will bring more transparency and responsibility to derivatives markets - so we know who is doing what and who owes what to whom," he stated.
Earlier this month, Mr Barnier reassured companies operating in the European financial sector that they will not be put at a competitive disadvantage to their global rivals by more centralized control of activities such as derivatives trading and short selling.
By Tony Aynsley
View other announcements from
Road to Recover Class Action Proceeds Grows More C...
New worldwide class action laws brought on by globalization and increased participation in opt-in litigation have led to increased complexity in class...
CompatibL and d-fine announce partnership
CompatibL, a recognised leading provider of risk management solutions, and d-fine, a European consulting firm handling complex technological and analy...
FundCount Wins Best Accounting Solution at Family ...
FundCount Wins Best Accounting Solution at Family Wealth Report AwardsMeets family office needs for a unified accounting, general ledger and reporting...