The Futures and Options Association has warned the European Commission that its proposal for reforming derivatives oversight could harm the over-the-counter (OTC) derivatives market.
In its official response to the EC consultation on its document Ensuring efficient, safe and sound derivatives markets, published on July 3, the London-based industry body supported the general thrust of what the EU is trying to do.
In particular, the FOA embraced “the need for closer regulation of the OTC derivatives markets, the use of central counterparty clearing for standardised transactions and the introduction of comprehensive transaction reporting to regulatory authorities”....