The contents of four European directives will determine the
future of credit default swaps (CDS) in Europe. Lawyers and
industry representatives are relieved that the focus is on
transparency rather than bans, but still uncertain what the
detail will mean.
Proposals are expected for the newest directive, known as
the European Markets Infrastructure Legislation (Emil), in June
Emil is expected to take form as a regulation rather than a
directive, which means there is no scope for member states to
interpret it differently. A regulation raises the stakes
and pins down details, said Richard Metcalfe, head of
European Policy at Isda in an interview with IFLR.
Regulations are used rarely, when an issue is felt to be
particularly serious or urgent.
Emil will focus on how the newly created European Markets
Supervisory Authority (Esma) will regulate central
counterparties (CCPs). Concerns have been raised over...