The European Union is considering a draft law that would require traders to “report the details of any [over-the-counter] derivative contract” they have entered “no later than the working day following the execution.” Failure to do so could result in fines for the financial firm. “The penalties provided shall be effective, proportionate and dissuasive,” according to a European Commission document obtained by Bloomberg News.
Market Transparency
The European Commission is working on draft rules aimed at improving transparency and safety of the OTC derivatives market, according to a Reuters report. The rules would require clearinghouses to develop links with competitors, according to draft laws that are expected to take effect next year. The rules also address fragmentation of the EU market infrastructure because they would establish a framework for “interoperability,” which “is an essential tool to achieve integration of the post-trading market in Europe.”
Gregg D. Killoren
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