EU Outlines Potential Derivatives Reforms

Law360, New York (July 6, 2009, 12:00 AM EDT) -- The European Commission has outlined proposals it is considering that would alter the way over-the-counter derivatives are traded, as part of efforts to reform and strengthen the financial system in the wake of the global economic crisis.

On Friday, the EC described several measures, including standardization of derivatives contracts and creating central data repositories that would collect information on derivatives trades such as the number of transactions and the size of outstanding positions.

The commission also proposed the creation of a central clearinghouse for derivatives, saying...
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