Delaying the measures on over-the-counter derivatives trades “would have serious implications on our credibility vis-a-vis our international partners, at a time when key discussions on the cross-border application of rules on OTC derivatives are taking place”, according to a letter from Barnier. Members of the European Parliament have threatened to reject two technical standards proposed by Barnier’s aides amid concerns they would be too onerous for non-financial businesses and aren’t in line with the overall legislation.
“We have found the procedure extremely unsatisfactory”, Sharon Bowles, chairwoman of parliament’s economic and monetary affairs committee, said. “In particular the timing of the commission’s adoption of the delegated regulations just before recess meant that under normal procedure we would have only had one week to scrutinise the technical standard.“
Lawmakers are concerned the rules may force non-financial companies to begin passing their trades through clearinghouses even when the value of such transactions are considerably below systemic relevance. Should the committee oppose the rules, the dossier would then be sent to the full assembly for further review. If it rejects the draft standards, they couldn’t enter into force. The commission, with input from the European Securities and Markets Authority, would then need to re-adopt a version of the measures for review by lawmakers and national governments.
Full article
© Bloomberg
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article