The European Economic and Monetary Affairs Committee has approved a series of amendments to the Capital Requirements Directive, one of which requires the Commission to report on measures to put forward, by the end of 2009, proposals to enhance transparency of over the counter markets such as requiring clearing through a central counterparty. The text of the approved amendments has not yet been published but the press release from the European Parliament does not mention the proposal that CDSs cleared through a CCP should be entitled to preferential treatment in terms of capital requirements, as proposed by the Commission. The amendments still need to be approved by the Parliament (and a plenary sitting is set for April) and then the European Council.

View New rules for banks to avoid a future financial crisis, 10 March 2009