European Union lawmakers pressed ahead with new rules for derivatives on Thursday, helping the bloc meet one global pledge to make markets safer as it struggles to meet another on raising bank capital levels to diminish risk. The European Parliament, meeting in Strasbourg, France, decided not to proceed with a resolution which, if passed, would have forced regulators to rethink long-awaited derivatives regulation, triggering delay and uncertainty for markets.
EU financial services commissioner, Michel Barnier, said the new rules, which say derivatives trading contracts must be cleared and recorded, can now come into force, most likely mid-March. Currently most derivatives transactions are not cleared and there is no snapshot of trades to see who is exposed, potentially creating huge uncertainties.
"By adopting these standards the EU meets its G20 commitment in the context of the reform of financial services. The new rules will reduce the risks related to derivative transactions,"
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