EU Regulators Seek Feedback On OTC Reform Proposals

Law360, New York (March 7, 2012, 7:27 PM EST) -- European financial regulators crafting sweeping new reforms for the over-the-counter derivatives market invited stakeholders on Tuesday to weigh in on planned regulations intended to limit the risk of those transactions when they don't pass through central clearinghouses.

Last month, European Union finance ministers and the European Parliament adopted reforms for the roughly $700 trillion OTC market, including a requirement that most trades must pass through clearinghouses.

While those central counterparties are the regulation's primary tool for reducing the risks that one party's default could pose to...
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