Oct. 4 (Bloomberg) -- European Union finance ministers reached an agreement on draft regulations aimed at increasing transparency and reducing risk in the over-the-counter derivatives market.
“The draft regulation calls for reporting of all derivative contracts to trade repositories (i.e. central data centers) and the clearing of standardised OTC derivative contracts through central counterparties in order to reduce counterparty risk,” the ministers said today in a statement at a meeting in Luxembourg. “This is aimed at preventing the default of one market participant causing the collapse of other market players, thereby putting the entire financial system at risk.”
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