Brussels, 31/01/2012 (Agence Europe) - Representatives of the European Parliament and the Danish Presidency of the EU Council of Ministers were unable to reach agreement on Tuesday 31 January on the draft EU derivatives regulation. Negotiations are still in deadlock over the role of the European Securities and Markets Authority (ESMA) in the event of a dispute among national supervisors over centralised clearing houses (CCPs) for standard derivatives. New three-way institutional talks will take place next week.
As instructed by the ECOFIN Council, the Danish Presidency briefed MEPs on the member states' preferred option for dealing with CCP licensing disputes among national supervisors. By a two-thirds majority vote, the College of Supervisors, under this option, would be able to reject a licensing decision by a CCP in the host member state. The College of Supervisors would then be able, again subject to a two-thirds majority vote, to request that ESMA issue a binding opinion, revoking the licence. MEPs are unhappy with this two-step approach and the idea of the College of Supervisors having to vote again after having already rejected the CCP once. An expert says that after much dispute at the ECOFIN Council, the Danish Presidency's room for manoeuvre is restricted.
Another open question is the MEPs' demand for a revision of the legislation just one year after it comes into force. The European Commission says that it far too soon, but the EP's insistence on a temporary exemption from the new derivatives rules for pension funds has been agreed upon - up to six years. (MB/transl.fl)