Brussels, 24/01/2012 (Agence Europe) - On Tuesday 24 January, EU27 finance ministers issued the Danish Presidency with a new negotiating mandate for the draft EU legislation on derivatives (see EUROPE 10536), which sets out a division of power between nation states and Brussels for the authorisation of centralised payment and clearing houses (CCP) for standardised derivatives.
Danish Economy Minister Margrethe Vestager said that the EU27 was perfectly capable of reaching compromise on very delicate matters.
Under a draft compromise, a member state's decision to licence a CCP could be challenged by the college of supervisors of that CCP under a unanimous decision (all countries minus the country hosting the CCP in question). In the event of a negative opinion, a college of supervisors could decide by a two-thirds majority to request binding mediation from the European Securities and Markets Authority (ESMA).
For colleges with up to 12 members, no more than two members from any one country will have voting rights. In addition to the 12 college members, no more than three supervisors from a single country would have the right to vote. The United Kingdom, where 80% of the derivatives market is based, wants the decision to send a dispute to ESMA for settlement to require a three-quarters majority at the college of supervisors.
EU Internal Market Commissioner Michel Barnier said it was crucial to have all member states on board, including the United Kingdom because the City of London is by far the biggest derivatives market and accounts for more than two-thirds of deals.
Barnier said he hoped the inter-institutional talks would be completed next week so that the EP can vote in plenary in the following fortnight and a final agreement can be reached before Easter. (MB/transl.fl)