| Issue |
Date |
Contact |
|
|
| Commission’s Consultation on OTC Derivatives |
12/07/2010 |
COM - DG MARKT |
Position
Summary:
EuropeanIssuers' Response of 9 July on the Commission's Consultation on OTC Derivatives of 14 June EuropeanIssuers has the following concerns: - Non-financial companies use the OTC derivative markets to manage risks. The current proposals for a clearing obligation or a requirement to post collateral do not take this sufficiently into account.
- EU non-financial companies should not be placed at a disadvantage to their competitors elsewhere. Thus a requirement for EU companies to tie up large amounts of cash which did not apply to similar companies elsewhere would be extremely unhelpful.
- Non-financial companies do not themselves constitute a systemic risk to the financial markets in the way that financial institutions may. They should not therefore be subject to the same regulatory requirements.
Position paper:
 OTC_derivatives_response_20100709.pdf
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