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EU push OTC Derivative Disclosure Rules
By Martin | June 9, 2009
The European Union wants over-the-counter derivatives to be cleared by a central counterparty and a dual disclosure regime for the financial products that have fallen through regulatory cracks, a top European securities regulator said on Monday.
Regulation of derivatives, financial instruments often used as a hedge against price fluctuations, is being targeted for reform after a type of derivative nearly toppled giant U.S. insurer AIG.
‘Our objective is to reduce systemic risk,’ Eddy Wymeersch, the chairman the Committee of European Securities Regulators (CESR), told Reuters at a regulators conference in Tel Aviv.
CESR groups national market supervisors from each of the 27 EU member states.
Wymeersch, a Belgian regulatory official, said the EU would most likely propose a disclosure regime where transactions would be revealed to supervisors.
The EU Internal Market Commisssioner Charlie McCreevy is due to present his policy proposals for the OTC derivatives market on June 17. Wymeersch said he could not speak for McCreevy but said he believed that use of a central counterparty and disclosure would be the focus of the proposed reforms.
Topics: Derivate, market risk | No Comments »
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