The Commission proposals include mandatory clearing of all "standardised" OTC derivatives, mandatory reporting of all OTC derivatives to trade repositories and common rules for CCPs and for trade repositories.
The consultation document outlines the Internal Market DG's current thinking on how to implement four of the policy actions that were announced in October 2009, notably:
· Mandatory clearing of all "standardised" OTC derivatives;
· Mandatory reporting of all OTC derivatives to trade repositories;
· Common rules for Central Counterparties (CCPs) and for trade repositories; and
· More transparency through reporting to trade repositories.
Other measures are foreseen later in 2010 or beginning of 2011, notably the revision of the Capital Requirements Directive, MiFID (Market in Financial Instruments Directive) and the Market Abuse Directive.
In substance, the Commission's future proposal will focus on four points:
· Reducing counterparty credit risk by mandating CCP-clearing where possible;
· Increasing transparency by mandatory reporting to trade repositories;
· Ensuring safe and sound CCPs through stringent and harmonised organisational, conduct of business and prudential requirements; and
· Improving efficiency in the EU post-trading market by removing barriers preventing interoperability between CCPs while preserving the safety of them.
Deadliner for comments is 10 July 2010.
© European Commission
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