On 11 May 2010, the European Commission published a speech given by Michel Barnier (EU Commissioner for the Internal Market and Services) entitled Building a new financial framework. The speech was given at the European Institute in Washington.
In his speech Barnier discussed the delivery of regulatory reform. He said that 2010 will be the year of decisions and convergence and 2011 needs to be the year of implementation. Some of the measures the Commission has already taken include legislation to regulate credit rating agencies which will come into force at the end of this year. However, whilst the legislation will tackle conflicts of interests and bring more transparency to the existing situation Barnier acknowledges that the Commission may need to go further. Barnier believes that the discussions in the US regarding derivatives transactions are slightly ahead of those in the EU and that the same objectives are shared. Quoting President Obama he said that derivatives transactions must “take place in the light of day” and calls for the greater standardisation of contracts. Barnier also calls for trade repositories to capture all necessary information and compulsory clearing via regulated central clearing counterparties. He also states that legislative proposals will be presented this summer.
At the end of his speech Barnier called on the US and EU to reform together to ensure a level playing field and to build a safer global macro-financial environment.
View Building a new financial framework together, 11 May 2010