Derivatives rules must be proportionate

Author: | Published: 9 Dec 2010

New trading requirements for over-the-counter derivatives must recognise the role of bespoke products, and not try to force non-standard instruments onto the regular exchanges.

The latest proposal for amendments to the Markets in Financial Instruments Directive (Mifid) picks up on ongoing regulatory work to clear derivatives through central clearinghouses, and tackles the question of how clearable instruments should be traded.

“The European Markets Infrastructure Regulation already forces parties not to deal directly with one another on...