Newsletter March 2012: EU supervisors ponder non-standard derivative rules

LONDON/PARIS/FRANKFURT – Following the political deal in the EU to regulate the huge over-the-counter derivatives market, the three European Supervisory Authorities (ESAs) have begun work on a raft of technical standards aimed at putting the agreement into practice across the bloc’s 27 member counties. This extensive exercise includes joint-ESA consideration of the risk mitigation requirements – collateral and capital levels – that will be imposed on non-standard derivative transactions not cleared through central counterparties.