Regulate derivative markets!

EU must shine light on dodgy derivatives!

In May 2011, Progressive MEPs backed measures to shed light on the $600,000 billion derivatives market.After a vote at the European Parliament's economic and monetary affairs committee, S&D negotiator Leonardo Domenici said: "This legislation will be a key tool in the fight against reckless speculation. Our goal was to improve transparency and risk management in over-the counter derivatives market.

"We have ensured that all meaningful information on derivative contracts is reported and accessible to European and national authorities. This is a core achievement because it will shed light on a market that has remained completely dark until now - as the crisis strikingly revealed.

"We have also guaranteed a flexible approach for commercial and non-financial bodies whilst ensuring that the risk of default is well managed.

"The sale of complex derivatives to local public authorities also needs special attention. We call on the Commission to include proposals on specific due diligence, information and disclosure requirements in the MiFID review."