Brussels, 20/04/2010 (Agence Europe) - “Commissioner Barnier's view is that the issue - and the kind of practices which are alleged to have taken place, if confirmed (and I highlight the if) - would be illegal and incomprehensible” and the issues raised would “strengthen his belief and determination that Europe needs to act in the area of derivatives”, the spokesperson for the internal market commissioner said on Monday 19 April on the subject of the complaint filed by the Securities Exchange Commission against the US bank, Goldman Sachs. Chantal Hughes went on to add: “The Commissioner strongly believes that we need to put an end to years of murkiness and opacity and secretive behaviour in this area”. Barnier in fact hopes to inject “more transparency” into the derivatives markets, an initiative that would allow “better risk assessment” and would contribute to putting “ethics and principles” at the heart of the financial system. In June, the Commission will present a comprehensive legislative proposal on derivatives in a three-fold aim: - greater product standardisation, the registration of financial entities active in the EU on these markets, and harmonised rules for central clearing houses for standardised derivatives. In a complaint filed last week against Goldman Sachs, the American stock exchange watchdog accuses the prestigious US business bank for having misled clients by knowingly selling them financial securities dependent upon high risk mortgage loans at a time when the American real estate credit bubble was about to burst. (M.B./transl.jl)