05 November 2008

First meeting of the working party on derivatives

The Commission's objective is to set up a clear roadmap on how to ensure that CDS are cleared through a central clearing counterparty by the end of this year. Technical work will proceed in subgroups.

Commissioner McCreevy welcomed the outcome of the first meeting of the working group set up to find a solution to the clearing of credit default swaps. Participants agreed that technical work would proceed in subgroups to deal with issues such as which CDS-types would be cleared by when, which standards should apply to central clearing counterpaties to ensure their robustness, how to ensure coherence with work taking place in the United States, how to deal with price reporting, how to ensure adequate information and supervision by regulators.

 

Following technical preparation involving all actors the Group would meet again early in December.

 

The Commission's objective is to set up a clear roadmap on how to ensure that CDS are cleared through a central clearing counterparty by the end of this year. All participants today confirmed that this was a reasonable timing.

 

List of organisations representing the industry and regulators, chaired by the European Commission:

AIMA - Alternative Investment Management Association

CEA - Comité Européen des Assurances (European Insurance and Reinsurance Federation)

CEBS - Committee of European Banking Supervision

CEIOPS - Committee of European Insurance and Occupational Pensions Supervisors

CESR - Committee of European Securities Regulators

DTCC - Depository Trust and Clearing Corporation

EACH - European Association of Central Counterparty Clearing Houses

EBF - European Banking Federation

ECB - European Central Bank

EFAMA - European Fund and Asset Management Association

FESE - Federation European Securities Exchange

FOA - Futures & Options Association

ISDA - International Swaps and Derivatives Association

LIBA - London Investment Banking Association

SIFMA - Securities Industry & Financial Markets Association

WBMA - Wholesale Markets Brokers' Association

 

Press release

 

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