EU Legislators Greenlight OTC Derivative Market Rules

Law360, New York (March 29, 2012, 9:23 PM EDT) -- European lawmakers on Thursday approved rules to require over-the-counter derivatives contracts to be cleared through central clearinghouses in a move to reduce risks in the $707 trillion market for the instruments legislators said played a pivotal role in the 2008 financial crisis.

The European Parliament overwhelmingly approved the new rules, which would require OTC derivatives, which make up a whopping 95 percent of the derivatives market, to pass through central clearinghouses that would limit the risk of such trades by ensuring that the buyer and the...
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