By Simon Miller

The European Parliament has voted through the European Markets and Infrastructure Regulation according to its steering MEP Sharon Bowles.

As a result, the vote clears the way for regulating the trading of over-the-counter financial derivatives.

In 2008, the G20 decided that all such standardised contracts should be traded on exchanges or electronic platforms and cleared through central counterparties to reduce the risk from a default.

This week, it was announced that NYSE Euronext was to spend $85m on its central clearing operations while the London Stock Exchange has taken over LCH.Clearnet in anticipation of this regulation.

In a statement, Bowles commented: "The open approach will provide consumers and investors with more choice and more efficient services. I will also work to ensure consistency on exemptions won in EMIR for pension funds and corporates are carried through in the Capital Requirements Regulation, currently being negotiated."

Home     More News

Financial Risks Today Beta Banner

Other stories you may find of interest:

A very British Complex
Greater complexity leads to greater risks for banks according to Professor Simon Collinson, Warwick Business School and the Simplicity Partnership

Journey’s end for Solvency II?
Solvency II, the long-mooted new capital adequacy regime for Europe’s insurers, is nearing implementation. Graham Buck reviews its progress

Impacting on investment
With emerging markets looking for investment, Simon Miller looks at the rise of impact investment and what risks entails in this socially aware vehicle

This website is a part of Perspective Publishing Limited, registered in England No 2876166.