EP publishes OTC draft report
25 February 2010
Rapporteur Werner Langen broadly endorsed the EC’s proposals and recommended that CCPs and their risk management systems should not be owned by users. Published in German, it was tabled for discussion at the ECON Committee on 22 February, but is now postponed until 8 March.
Langen broadly endorsed the Commission's proposals and recommended that the following points are be treated separately:
· The price of derivatives should continue to better reflect the risk, and the costs of the future market infrastructure should be borne only by market participants and not by the taxpayers.
· Central clearing houses (CCPs) and their risk management systems should not be supported by its users and may not even compete.
· Standards must be determined for ensuring the transmission of OTC derivatives to the Central Data Repository.
· In particular, SMEs special rules and lower capital requirements are to be allowed for bilateral derivatives agreements
· CDS must be subjected to an independent central clearing and may be limited if necessary for the concentration of risks or even be prohibited in particular cases.
· National regulators must have access to Central Data Repository.
· The European Securities Authority (ESMA) should be competent for the approval of the central clearing houses in the European Union and from third countries.
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