The European Parliament Economic and Monetary Affairs Committee has started to review a report on the proposal for a Regulation for OTC derivatives, central counterparties and trade repositories (EMIR). The rapporteur, Werner Langen, presented his views, which include:

  • regulating only OTC derivatives, not all derivatives;
  • not exempting any particular sector (specifically the energy sector or pension funds);
  • opposing interoperability between clearing houses, because he thinks this could cause a build-up of systemic risk; and
  • asking the European Securities and Markets Authority (ESMA) to assess whether retroactivity could be introduced for reporting. Politicians can submit comments until 16 March and a committee vote on the report is planned for 20 April. (Source: Press Release and draft report)