Non-objection to risk-mitigation standards for OTC derivatives

Summary

The European Parliament decides not to object to new technical standards for managing risks in over-the-counter (OTC) derivative contracts that are not cleared through a central counterparty.
10 26.10.2016
Other
finance
economy
international relations

Key points

  • The European Parliament approves new technical standards for managing risks in specific financial contracts.
  • These rules specifically target over-the-counter derivatives that are not processed through a central counterparty.
  • The standards define how much collateral must be held and how assets should be segregated to mitigate risk.
  • This action aligns European Union regulations with international financial stability frameworks established by global bodies.
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