EC Proposals for Increased Transparency and Risk Mitigation in Derivatives Markets

On July 3, 2009, the European Commission released a Communication entitled “Ensuring Efficient, Safe and Sound Derivatives Markets.” The Communication analyzes the risks associated with derivatives markets and their role in the financial crisis. It is accompanied by a Staff Working Paper, which provides an overview of derivatives markets, with a particular focus on over-the-counter trading, and an assessment of the effectiveness of current measures to reduce risk.