''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..''
No comments:
Post a Comment