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EU Commission Proposes Simpler and More Efficient Derivatives Rules 

May 6, 2017

The European Commission is today proposing some targeted reforms to improve the functioning of the derivatives market in the EU. The reforms provide simpler and more proportionate rules for over-the-counter derivatives to reduce costs and regulatory burdens for market participants without compromising financial stability. A good example of better regulation in practice, this is essential to the creation of a Capital Markets Union (CMU), a key part of the Investment Plan for Europe, and for investments, growth and jobs by improving the efficiency of the market while maintaining prudential objectives.

The EU adopted the European Market Infrastructure Regulation (EMIR) in 2012 following the financial crisis to better manage and monitor the risks arising from derivatives markets for financial stability. Today's reforms to EMIR build on the results of the Commission's Call for Evidence, a public consultation looking at the cumulative effect of the new financial sector rules put in place since the crisis. It is also part of the Commission's efforts to ensure that EU legislation delivers results for citizens and businesses effectively and at minimum cost (REFIT).

Valdis Dombrovskis Vice-President responsible for Financial Stability, Financial Services and Capital Markets Union said: "The European Market Infrastructure Regulation is at the heart of the EU's financial reforms. Today's proposal ensures that EMIR achieves its objective of reducing systemic risk in the OTC derivatives market, while keeping costs to a minimum for the real economy. The proposal builds on the Commission's Call for Evidence and deepens our Capital Markets and our efforts to support investment, growth, and jobs."

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