Friday, September 6, 2013

'' Europe recognises US and Japan derivatives rules''

''European regulators have agreed to recognise new rules laid out by the US and Japan to tighten derivatives trading as global authorities continue to build a framework to police the hedging tools blamed for exacerbating the financial crisis.
The European Securities and Markets Authority (Esma) said on Tuesday it had proposed to recognise as equivalent the rules drawn up by the US and Japan that were designed to meet a delayed mandate by the G20. The rules Esma wants to recognise include the use of clearing houses and trade repositories, as well as requirements for non-financial counterparties and risk mitigation techniques for uncleared trades.
Agreement between the US, Europe and Japan, the authorities policing the three markets that account for the vast bulk of trading OTC derivatives, would mark a significant step. Four years ago global policy makers pledged to shore up systemic risk in markets by moving more over-the-counter derivatives trading on to trading venues, with more deals backed by collateral and processed through clearing houses. Although most countries missed the end-2012 deadline, both Japan and the US have already mandated clearing of swaps trades..''

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