Brussels, 17/10/2008 (Agence Europe) - EU Internal Market Commissioner Charlie McCreevy issued a statement on Friday 17 October 2008 in which he explained that he would be making an in-depth study of the global derivatives market, valued at $600,000 billion a year. He will be focussing on the new credit default swaps, which now account for around 10% of all derivatives. “I would like to have, by the end of this year, concrete proposals as to how the risks from credit derivatives can be mitigated,” he explained, calling on stakeholders to submit their suggestions to him. Derivatives are not standardised because they are bespoke products traded off-exchange, in other words over the counter between the two parties. The current financial crisis has revealed how the collapse of Lehman Brothers, a big derivatives player, is threatening the proper functioning of derivatives markets and having a domino effect on other banks and institutions. “I am aware of the many reasons why more of these derivatives are not change traded. However, I am not convinced that more derivatives could not be standardised. This is one of the issues we need to look at in the time ahead. But there is a far more pressing need and that is to have a central clearing counterparty for these derivatives,” he added. (M.B./trans.fl)