Commission consultation on derivatives and market infrastructures of 14 June 2010 - ACT Response

The ACT has submitted a response to the European Commission’s public consultation on derivatives and market infrastructures.

The Commission recognises the need for an appropriate and balanced legislative approach for corporate end users of OTC derivatives and has proposes two levels of threshold test before requiring mandatory clearing. Nonetheless the ACT believes the use of central clearing and margining is fundamentally the wrong method of managing the risk that non financial companies pose to the financial sector.