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26 May 2010

CESR intensifies co-ordination for Euro denominated debt instruments


CESR is of the view that structural reforms should be rapidly introduced to enhance the transparency, organisation and functioning of the bond and CDS markets that are currently largely OTC.

Following the recent CESR Plenary meeting in Barcelona on 7 May, CESR began intensifying close co-ordination of its Members’ market surveillance efforts. Furthermore, in order to assess if any further action should be taken, dialogue between CESR and its Members has been intensified, especially given the decision by the German BaFin to introduce a short selling ban (which took effect Wednesday 19 May).
At present, CESR Members are closely monitoring the situation along with national Finance Ministers and central banks. If necessary, co-ordination of any further action will take place within CESR.
CESR is of the view that structural reforms should be rapidly introduced to enhance the transparency, organisation and functioning of the bond and CDS markets that are currently largely OTC. Some preparatory steps have already been taken by CESR through the launch of its consultation on enhancing trading transparency on a broad range of non-equity instruments, including corporate bonds and OTC derivatives (published on 7 May 2010, Ref. CESR/10-510). CESR is also in the process of carrying out work on possible measures to enhance the organisation and integrity of OTC derivatives markets. These initiatives would enable regulators to better monitor developments and trace potential cases of market abuse and would enhance the overall efficiency of these markets. In this respect, CESR urges the European Commission to urgently adopt the planned legislative reforms ahead of its original timetable.
CESR will further complement this work by evaluating enhanced transparency for government bonds markets and related CDSs in the light of recent developments, and examining the operation of these markets, including settlement. The appropriate Standing Committees have been mandated to further analyse these issues.
CESR and its Members will continue to monitor developments closely and the existing co-ordination will be maintained on an intensified basis amongst Members. CESR will also maintain close and regular contact with the European Commission.


© CESR - Committee of European Securities Regulators

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