Follow Us

Follow us on Twitter  Follow us on LinkedIn
 

17 December 2010

CEA: OTC derivatives regulation must reflect risk profiles


Default: Change to:


The CEA is also concerned with ensuring that insurers are not deterred from using hedging techniques by a one-size-fits-all regulation that is insufficiently tailored to long-term investors.


Over-the-counter (OTC) derivatives are an important hedging tool for insurers. To guarantee efficient, safe and transparent financial markets for investments, insurers support central clearing of OTC derivatives.

The CEA, however, believes that the proposed new EC Regulation must not unintentionally create new systemic risks. The safeguards and facilities in the future clearing framework should therefore be carefully considered.

As currently drafted, the Regulation proposal would place disproportionate costs on long-term investors and these would ultimately be passed on to policyholders.




© CEA - Comité Européen des Assurances


< Next Previous >
Key
 Hover over the blue highlighted text to view the acronym meaning
Hover over these icons for more information



Add new comment