The ECON Committee adopted its position on the future EU legislation. All derivates will be subject to a notification requirement. "The volume of all transactions has to be transparent to have maximum stability of financial markets and to enable supervisory authorities to do their work properly", said EPP Group MEP, Werner Langen, who is the EP Rapporteur on the regulation on derivatives.

"We call for transparency and stability, in particular for those derivatives that are dealt with off stock exchanges and can cause massive disruptions of financial markets. We, as Parliament, are determined to have a piece of legislation with a minimum of exemptions for a maximum of stabilising impact", he added.

 

Members want to include all off-exchange (OTC) derivatives and make them subject to risk-oriented assessment and clearing. Such derivatives have hitherto been processed on a bilateral basis. That black box worth trillions of euros has to be made more transparent. "We call for standard procedures, reporting requirements and the use of clearing devices at organised trade platforms", said Langen. The European Agency for Securities and Markets (ESMA) is to be in charge of the supervision.

All derivates will be subject to a notification requirement. According to Langen:"The volume of all transactions has to be transparent to have maximum stability of financial markets and to enable supervisory authorities to do their work properly. Risk management will not be possible otherwise".

Parliament is going to adopt the proposal at first reading in the beginning of July. "Only after that date are we going to enter into negotiations with the Council. If we can find an agreement swiftly, the new standards could be established by autumn this year. That would require, however, more determination on the part of the Member States for real market transparency and a minimising of risks associated to derivatives", said Langen.