Brussels, 30/11/2009 (Agence Europe) - European finance ministers are to support the legislative action that the European Commission will be launching next year in order to reduce the risks inherent to the derivatives market (EUROPE 999). In conclusions to be adopted on Wednesday 2 December, they welcome the “paradigm shift in the approach towards derivatives markets” whereby there is a move “from so-called light-handed regulation to a more ambitious and comprehensive regulatory policy”. Ministers will note transcription of the G20's specific requests through the following legislative initiatives: - the introduction of harmonised rules governing the activity of central clearing bodies through which standardised derivatives must be exchanged; - the introduction of greater capital requirements for derivatives that may continue to be exchanged bilaterally, with necessary review of the Basel II directive; - the obligation to create trade repositories allowing derivatives transactions to be registered outside regulated markets, and to which European regulators and central banks will have access. Ministers take the view that the use of central clearing units based in the EU as well as the creation in Europe of trade repositories should be encouraged. They also broadly welcome the Commission's intention to put forward, or revise as appropriate, several legislative proposals relating to the directive on markets in financial instruments (MiFID) and the market abuse directive (MAD) (2003/6/EC) in order to mitigate operational risks within the derivatives market. (M.B./transl.jl)