29.03.2012
By Simon Miller
The European Parliament has voted through the European Markets and Infrastructure Regulation according to its steering MEP Sharon Bowles.
As a result, the vote clears the way for regulating the trading of over-the-counter financial derivatives.
In 2008, the G20 decided that all such standardised contracts should be traded on exchanges or electronic platforms and cleared through central counterparties to reduce the risk from a default.
This week, it was announced that NYSE Euronext was to spend $85m on its central clearing operations while the London Stock Exchange has taken over LCH.Clearnet in anticipation of this regulation.
In a statement, Bowles commented: "The open approach will provide consumers and investors with more choice and more efficient services. I will also work to ensure consistency on exemptions won in EMIR for pension funds and corporates are carried through in the Capital Requirements Regulation, currently being negotiated."
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