Brussels, 10/06/2011 (Agence Europe) - Several member states are unhappy with the latest compromise deal drawn up by the Hungarian Presidency for the draft EU regulation on derivatives that was discussed by COREPER sherpas on Wednesday 8 June 2011 (see EUROPE 10215). A source explained that there were a number of countries vetoing the compromise, leading to uncertainty about whether agreement would be reached at the 21 June 2011 ECOFIN Council. Member state representatives will continue negotiations on Wednesday 16 June.
The United Kingdom, Germany, Spain, Bulgaria and the Czech Republic oppose the idea of giving the European Securities Markets Authority (ESMA) power to supervise central clearing houses for standard derivatives, wanting this to be done by the colleges of supervisors in the member states. The United Kingdom says that all derivatives, whether sold on regulated bourses or over the counter (OTC) should use clearing houses. The United States agrees with the UK and has made this clear to the EU. The United Kingdom seems to be becoming more isolated in its opposition to the Hungarian draft compromise. The EP's economic and monetary affairs committee suggests restricting the new regulation to OTC derivative deals (see EUROPE 10386). Another tricky issue is clearing houses' access to central bank finance. France is very keen on the idea because clearing houses are of crucial importance to stability of the financial system, but is not backed by the other countries. (M.B./transl.fl)