European derivatives trading will soon have to cope with more stringent reporting requirements as a result of a decision that was recently made by the European Commission.
The European Securities Markets Authority previously asked that the EC push back the adoption of new reporting requirements until 2015, according to Reuters. These rules would affect derivatives securities transacted through exchanges.
The EC denied this request, and sent a letter that was viewed by The Financial Times to both the European Parliament and ESMA. As a result, market participants will need to comply with new reporting requirements starting on Feb. 12, 2014. Jonathan Faull, who serves as head of the financial markets division of the EC, emphasized the risks that would be created by pushing back the timeline for adopting the new reporting requirements.
He stated that doing so "runs counter to the principle of ensuring the stability of the financial system and the functioning of the internal market for financial services as reflected in the Union financial legislation," according to the news source.
The ESMA had emphasized that it wanted more time to develop guidance for proper implementation when it requested a postponement of the deadline, Reuters reported. However, Faull emphasized that he wanted to cut down on the opacity in the market for derivatives trading, and that pushing back adoption would hinder the fulfillment of this objective.