The EESC welcomes the proposal for a regulation on derivatives, unregulated markets, central counterparties and trade repositories.
The EESC agrees on both the proposal regarding central counterparties and the restrictions on short selling. Making transactions transparent, holding operators and counterparties accountable and avoiding excessive speculation: these are the necessary goals that the Commission is tackling effectively, putting in place measures to offset, at least in part, the absence of regulation that contributed to the financial crisis.
The EESC points out, however, that there are risks that must not be underestimated. They include the risk of overstressing the benefits that CCPs can bring to CDS markets in the short term. In order to tackle such risks effectively, the issues of CCP interoperability, confidential data exchange, concentration of data gathering and reporting with the central counterparty and customer involvement in CCP governance should be examined with particular care.
The EESC recommends that the European institutions:
- swiftly adopt the regulation on OTC derivatives markets, which will restore confidence and calm to the markets and protect savers;
- complete the new regulatory system on derivatives as envisaged by the Commission;
- speed up completion of the whole institutional and regulatory architecture involved in reform of financial markets regulation.