21 October 2017
visit www.response.ncr.com

CESR considers mandatory electronic trade confirmation for OTC derivatives

20 July 2010  |  12106 views  |  0 grid

The Committee of European Securities Regulators is considering mandating the use of electonric trade confirmation in the over-the-counter derivatives market as part of a regulatory overhaul designed to promote further standardisation and shift more dealing to organised trading venues.

In a consultation paper, CESR has called for industry comment on the potential costs of introducing a mandatory electronic trade confirmation requirement for European trading of OTC derivatives.

While maintaining the view that firms should be able to retain the flexibility to customise aspects such as standard valuation, payment structures and payment dates, CESR remains convinced that greater standardisation of OTC derivatives contracts can deliver efficiency benefits to the market.

"In particular, CESR has identified the use of electronic confirmation systems as one measure which could potentially deliver benefits to the market," states the agncy.

In relation to 'exchange trading' of derivatives currently traded OTC, "CESR believes that trading on organised markets could deliver a number of benefits like providing a higher level of transparency, enhancing liquidity, ensuring efficiency and risk reduction and providing an easy access for market participants."

As a preliminary opinion, CESR says it is in favour of "incentivising" the use of organised trading venues, but continues to consider whether mandatory usage is desirable, taking into account the discussions currently taking place on this issue in other jurisdictions and international fora.

As such, CESR is also calling for industry input on which kind of incentives could effectively promote exchange trading.

An open hearing will be organised during the consultation period for interested stakeholders on 11 August. Based on the outcome of the consultation process, CESR will publish its final position as a technical advice to the European Commission.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Nyse Euronext and Markit Boat in OTC data reporting play

Nyse Euronext and Markit Boat in OTC data reporting play

01 July 2010  |  10231 views  |  0 comments
Regulators fast-track global review of OTC derivatives clearing

Regulators fast-track global review of OTC derivatives clearing

02 February 2010  |  9149 views  |  0 comments
DTCC calls on lawmakers to mandate use of central trade reporting utility

DTCC calls on lawmakers to mandate use of central trade reporting utility

09 October 2009  |  6791 views  |  0 comments
OTC derivatives gain standards based on FpML

OTC derivatives gain standards based on FpML

29 July 2009  |  7052 views  |  0 comments
CESR to set out rules for improving transparency in non-cash markets

CESR to set out rules for improving transparency in non-cash markets

10 July 2009  |  5165 views  |  0 comments
US regulatory reforms to drive automation in OTC trading

US regulatory reforms to drive automation in OTC trading

14 May 2009  |  8360 views  |  0 comments
CESR calls for EU-based derivatives information repository

CESR calls for EU-based derivatives information repository

27 February 2009  |  8200 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.vasco.comvisit www.niceactimize.com

Top topics

Most viewed Most shared
HSBC partners Bud for open banking trialHSBC partners Bud for open banking trial
8889 views comments | 22 tweets | 26 linkedin
satelliteGates Foundation backs Ripple collaboratio...
8656 views comments | 13 tweets | 10 linkedin
IBM uses blockchain to improve cross-border payments processingIBM uses blockchain to improve cross-borde...
7718 views comments | 9 tweets | 17 linkedin
Sibos 2017: API or the highwaySibos 2017: API or the highway
7201 views comments | 10 tweets | 22 linkedin
Eight banks form joint venture to launch blockchain trade platformEight banks form joint venture to launch b...
6807 views comments | 14 tweets | 23 linkedin

Featured job

Competitive
New York, NY - USA (some flexibility on location)

Find your next job