Michel Barnier, EU internal market Commissioner, said on Tuesday that Brussels’ original legislation had been prepared carefully and that he believed its proposed scope – covering over-the-counter derivatives – was reasonable. Mr Barnier acknowledged that some European parliamentarians wanted to go further, but said that Werner Langen, the German MEP who is steering the legislation through the European Parliament, was content with the Commission’s original scope.
The Commissioner was emphatic that he would not want to see any weakening of the original proposals. “I want my proposal at the very least … I don’t want any watering-down,” he said. But he did not indicate a heavy push by the Commission to extend the scope of the proposed rules further: “For the rest, let’s see in the discussions between the Parliament and the Council,” he said.
Mr Barnier, who was speaking after a meeting of EU finance ministers in Brussels, made his comments a week after one of his senior officials gave a stronger signal that the Commission was in favour of extending the scope. Patrick Pearson said he believed there was “a lot of mileage going” for the idea. The issue – and the final shape of the legislation – could have implications for the proposed merger between Deutsche Börse and NYSE Euronext, which will create the world’s largest exchange group in terms of revenues. Part of the planned benefits of the deal would come from streamlined clearing arrangements, but opening up exchange-traded derivatives to competition would threaten the plan.
The draft legislation is still being discussed by MEPs and Member States, both of whom must approve a final version of the rules before these can come into effect.
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