Europe Takes Lead on Regulating Over the Counter Derivatives following Fiasco in Greece

Draft report on OTC derivatives market reforms

London, February 2010

Werner Langen MEP has published a draft report on over-the-counter derivatives reforms to be considered by the European Parliament’s Economic and Monetary Affairs Committee in its decision on how the European derivatives markets should be regulated going forward. On 11 February 2010, Member of the European Parliament (MEP) Werner Langen published a draft report on the over-the-counter ( OTC) derivative market reforms in the European Union.  The Langen Report (the Report) is due to be discussed by the European Parliament’s Economic and Monetary Affairs Committee on 22 February 2010.

The Report generally supports the mandatory clearing of standardised derivatives through independent clearing between financial institutions.  It further endorses the need for greater risk management, transparency and the use of independent central counterparty (CCP) clearing.