The Committee of European Securities Regulators (CESR) has issued a press release stating that it is intensifying the co-ordination of its members’ market surveillance following the recent market volatility in euro denominated debt instruments.
In addition in order to assess if any further action should be taken, a dialogue between CESR and its members has intensified, especially given the decision by the German BaFin to introduce a short selling ban on 19 May 2010.
CESR believes that structural reforms should be rapidly introduced to enhance the transparency, organisation and functioning of the bond and credit default swap (CDS) markets that are largely over-the-counter (OTC). CESR has already taken some steps through the launch of a consultation on enhancing trading transparency on a broad range of non-equity instruments. CESR is also carrying out work on possible measures to enhance the organisation and integrity of OTC derivatives markets. CESR calls on the European Commission to urgently adopt the planned legislative reforms ahead of its original timetable.
CESR will complement its existing work by evaluating enhanced transparency for government bonds markets and related CDS in light of recent developments, and will examine the operation of these markets, including settlement.