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EU Seeks to Tighten Deriv Trading Rules

The European Commission is proposing to put in place a wide range of regulatory reforms for the financial markets.

The European Commission is proposing to put in place a wide range of regulatory reforms for the financial markets, The Wall Street Journal reports. The proposed Markets in Financial Instrument Directive, or MiFID II, revealed on Thursday, aim at improved oversight of derivatives trading and of high-frequency strategies.

The new legislation requires off-exchange brokers to meet reporting requirements of large exchanges and it annuls exemptions for derivatives and bonds. The legislation aims to bring all liquid derivatives onto a regulated market and requires them to be cleared. The proposal follows a commitment by the Group of Twenty industrialized and developing nations in 2009 and needs ratification from the European Parliament and EU countries.

Click here for the story from The Wall Street Journal.

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