Tuesday March 1 2016
News Source: Global Exchanges
Focus: Trading Rules
Type: General
Country: European Union
Link: http://europa.eu/rapid/press-release_IP-16-463_en.htm?locale=en
The European Commission has adopted a new set of rules that requires certain over-the-counter (OTC) credit derivative contracts to be cleared through central counterparties (CCPs). Mandatory central clearing is a vital part of the response to the financial crisis; it follows commitments made by world leaders at the G-20 Pittsburgh Summit in 2009 to improve transparency and mitigate risks.
The decision takes the form of a Delegated Regulation and implements part of the clearing obligations set out in the European Market Infrastructure Regulation (`EMIR`).
This clearing obligation will enter into force subject to scrutiny by the European Parliament and the Council of the EU. It will be phased in over three years to give extra time for smaller market participants to comply.
Click on the link above for further details.