The European Commission is today (4 May 2017) proposing some targeted reforms to improve the functioning of the derivatives market in the EU. The reforms provide simpler and more proportionate rules for over-the-counter derivatives to reduce costs and regulatory burdens for market participants without compromising financial stability. A good example of better regulation in practice, this is essential to the creation of a Capital Markets Union (CMU), a key part of the Investment Plan for Europe, and for investments, growth and jobs by improving the efficiency of the market while maintaining prudential objectives.

The EU adopted the European Market Infrastructure Regulation (EMIR) in 2012 following the financial crisis to better manage and monitor the risks arising from derivatives markets for financial stability. Today’s reforms to EMIR build on the results of the Commission’s Call for Evidence, a public consultation looking at the cumulative effect of the new financial sector rules put in place since the crisis. It is also part of the Commission’s efforts to ensure that EU legislation delivers results for citizens and businesses effectively and at minimum cost (REFIT).

The full press release is available here.

[Source: European Commission]