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21 march 2013

Derivatives clearing for greater security

The European Market Infrastructure Regulation (EMIR) of 4 July 2012 brouht progress in terms of the effective functioning of over-the-counter derivatives transactions.


The clearing obligation for standardised derivatives contracts increases the security of these markets by reducing systemic risk. The risk weighing on banks' balance sheets is also reduced.

Moreover, the compulsory recording of all derivatives transactions in an approved trade repository accessible to all national supervisors improves transparency on these trades.

The draft regulation of 7 March 2012 on central securities depositories, which hold securities an execute transactions, aims to bring more security and efficiency to securities settlement and delivery in Europe. This regulation reduces the settlement period to two days and harmonises penalties in the event of non-delivery.

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