Jonathan Hill, the European Union’s financial-services chief, said that the bill will be a priority. Measures taken by regulators to boost the robustness of the over-the-counter derivatives market have led to a concentration of risk in clearinghouses, Hill said.
The Group of 20 nations has called for greater use of clearing houses as part of their response to the crash that followed the 2008 collapse of Lehman Brothers Holdings Inc. The measures include forcing standard types of OTC derivatives to go through central clearing in a bid to boost transparency and contain the fallout from individual defaults.
In addition to the clearinghouse rules, Hill said he is also exploring whether there is a need to boost measures covering other parts of the financial industry, in order to prevent firms being too-big-to-fail. “My bottom line is where I think there is risk and action needs to be taken to address it, whatever sector it is, we will go and argue for it,” Hill said. “But in trying to assess that risk, I will on every issue take into account the impact on jobs and growth.”
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