The Economic and Monetary Affairs Committee has passed a resolution on derivatives trading a few weeks before the European Commission publishes its legislative proposals on the same subject. The resolution calls for:

 

  • strict rules to prevent inexperienced users and speculators from building up dangerous levels of risk;
  • the Commission to reduce the overall volume of derivatives traded and to distinguish between derivatives, for example, according to the extent to which they are used for legitimate hedging purposes;
  • rules banning purely speculative trading in commodities and agricultural products and speculative CDS trading;
  • lighter regulation of OTC trades in derivatives when carried out by corporate end-users;
  • the strengthening of central counterparty clearing facilities to increase the public trading of derivative contracts; and
  • central counterparty clearing facilities not to be organised wholly by users.