Since entering in September, the EU financial regulatory reform significantly speeded up. Following last week’s launch of cross-border regulatory framework for approval by the Member States, 15 the European Commission launched two were for OTC derivatives trading and short selling operation of the monitoring legislative proposals designed to eliminate blind spots in the past supervision, improve financial derivatives goods market transparency and security, while reducing volatility in market conditions when the short selling of financial market operations could have devastating impact. As the proposals are expected within the basic, more details need to be clear in a few months, the European market showed little reaction to the day, the three major indexes were up slightly overcast.

Select the Lehman Brothers Bankruptcy anniversary of the launch of the new regulation of derivatives regulation, the European Commission can be described as well-intentioned. Highlights the bankruptcy of Lehman Brothers two years ago, playing outside derivatives counterparty default risk and its potential for broader financial market and financial system of the potential risks. Therefore, the European regulators over regulatory reform in this area is the central focus of all clearing systems and reporting systems. 15 European Commission legislative proposals put forward by the provisions of OTC derivatives contracts should be registered in the central data center, and through the central counterparty to the transaction. This is equivalent to the original buyers and sellers into buyers bilateral trading model with the central counterparty transaction, the central counterparty transaction with the seller again, in order to ensure that EU regulators to grasp the overall situation of the financial derivatives market, to avoid a contract rivals the default by bringing systemic risk.

Needless to say, the implementation of the new regulations would be inevitably increase the cost of derivatives transactions, especially those who dominate the market for large financial institutions may be most affected. In response, EU Internal Market and Services Commissioner Balniel that the appropriate cost to pay is worth it, and said the purpose of reform is to develop a more responsible OTC derivatives market, enhance its transparency.

However, the new regulations although strictly it is not “across the board.” Legislative proposals, with airlines, energy production operators and other Fei financial corporation, Youyu its Shenyujiaoyi 的 main purpose is to hedge commodity prices, Hui Lv Ji Li Shuai Bodongzaocheng of risk, rather than in order to obtain Juelirun, so Zhiyao its transactions did not constitute a systemic risk from the new regulations can be constraints.

The Committee also announced on 15 short sales and credit default swaps of draft rules give the EU plans to set up the Authority and national securities regulators to special powers, that in emergency situations may prohibit or restrict short selling operation or CDS trading for 3 months.

The so-called short selling, is bearish on a stock investor when borrowing from the hands of the stock brokers after the throw, and then in the event before the actual delivery of shares shown with up to sell into, and closed only on the difference of delivery speculation. In the normal order in the next financial markets, the existence of short selling mechanism is conducive to active trading; but the volatility in financial markets, the short selling mechanism will increase oscillation, leading to irrational market crash. This time the provisions of the European Union on the restriction of short selling the equivalent of giving the regulatory authorities in an emergency start short-selling “circuit breaker” to prevent short-selling speculators guide the market in the pessimistic mood of self-realization. Debt crisis in Europe because of speculators short selling operation and burned by the European countries ate This time around the restrictions of short selling reform firm stand and walk in front of their U.S. counterparts.

Under the new rules, if investors hold shares of a company to empty the net position for the position and exceeded the company’s issued share capital of 0.2%, then they will have to disclose to regulators the size of the position; if the ratio exceeds 0.5% , investors should also be disclosed to the public. In addition, regulatory agencies in order to provide more information about transactions, short selling order must clearly labeled as “for air.” For an independent and sovereign bonds in the short position, the national regulatory authority to decide the appropriate disclosure rules.

The proposal put forward for the public disclosure requirements of hedge funds in Washington against the MFA said in a statement. The company said the public disclosure of individual investors to self-investment position is not appropriate, will make the capital market and investors pay a high price. “Naked short selling positions for non-public reporting systems are adequate to achieve the effect of strengthening the monitoring, while avoiding the capital markets and investors to the potential negative consequences.” The company said in a statement.

While the new regulations clearly conveys the intention of reform regulators, market participants believe that there are still many details to be answered, which may take months or even longer. This is because the institutions responsible for making rules and the European Securities Market Authority, and on the establishment of the council’s cross-border financial supervision of the Bill is still awaiting approval from the European Parliament. Therefore, the legislative proposals in the task assigned to this institution can only be on paper, the specific rules until January 1 next year after the establishment of the Authority be clear.

Author Bio: I am a professional editor from China Products, and my work is to promote a free online trade platform. http://www.himfr.com/ contain a great deal of information about neck foam pillow,permanent resident card,harley screaming eagle, welcome to visit!

Category: Business Management
Keywords: neck foam pillow,permanent resident card,harley screaming eagle,