EU Adopts Rules To Rein In Opaque Derivatives Market

Law360, New York (February 9, 2012, 5:20 PM EST) -- European Union finance ministers and the European Parliament on Thursday adopted new reforms for the roughly $700 trillion over-the-counter derivatives market, including a requirement that most trades pass through clearinghouses.

European legislators said they hoped that by forcing derivative trades through a central clearinghouse, they will reduce market risk and avoid a repeat of the 2008 financial meltdown. The rules, expected to take effect by the end of the year, also require parties to report all derivative contracts to central data centers to improve transparency....
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