EU Must Shine Light On Dogy Derivates, Say S&D Euro MPs

S&D Euro MPs today backed measures to shed light on the $600,000 billion derivatives market.

After a vote at the European Parliament’s economic and monetary affairs committee, S&D negotiator Leonardo Domenici said: “This legislation will be a key tool in the fight against reckless speculation. Our goal was to improve transparency and risk management in over-the counter derivatives market.

“We have ensured that all meaningful information on derivative contracts is reported and accessible to European and national authorities. This is a core achievement because it will shed light on a market that has remained completely dark until now – as the crisis strikingly revealed.

“We have also guaranteed a flexible approach for commercial and non-financial bodies whilst ensuring that the risk of default is well managed.

“The sale of complex derivatives to local public authorities also needs special attention. We call on the Commission to include proposals on specific due diligence, information and disclosure requirements in the MiFID review.”

S&D spokesman for economic and monetary affairs Udo Bullmann said: “Even though this legislation is a major step forward, there are still a number of issues which need to be tackled as soon as possible. One of these is speculation on commodity markets which makes food prices spike. We are therefore calling on the European Commission for specific provisions to prevent systemic risks and manipulative practices in the forthcoming reviews of the market in financial instruments directive (MiFID) and the market abuse directive”.