COMMISSION DELEGATED REGULATION (EU) No …/.. of 2.3.2017 amending Regulation (EU) No 648/2012 of the European Parliament and of the Council on OTC derivatives, central counterparties and trade repositories with regard to the list of exempted entities

The financial crisis highlighted deficiencies within over-the-counter (OTC) derivatives markets which traditionally have been an opaque part of financial markets, traded bilaterally between firms rather than over exchanges. In particular, the financial crisis highlighted the following two deficiencies: Counterparty credit risk – the web of relationships in the OTC market means the fear of default of a major market participant can have systemic implications. Transparency – the financial crisis (e.g. the failure of Lehman Brothers) demonstrated that market participants and regulators did not have sufficient visibility of exposures in the OTC market, causing unwillingness to trade in stressed markets.

2. To address these issues, the G20 agreed the following at the summit in Pittsburgh in 2009 : β€œTo this end, all standardized OTC derivative contracts should be traded on exchanges or electronic trading platforms, where appropriate, and cleared through central counterparties by end-2012 at the latest. OTC derivative contracts should be reported to trade repositories. Non-centrally cleared contracts should be subject to higher capital requirements

Topic  Financial Services 
Department  HMT 
Council Reference  6921/17 
COM Reference   
SEC Reference   
PE Cons   
C Reference  C(17)1324 

Associated file(s)

  1. Document 6921/17 - 272 KB - pdf
  2. EM 6921/17 - 1 MB - pdf

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