European Parliament Delays Vote On Derivatives Rules

BRUSSELS (Dow Jones)–The European Parliament’s economic committee has decided to delay a final vote on legislation that could dramatically impact the derivatives market.

The European Market Infrastructure Regulation, also known as Emir, will now be voted on May 24 instead of April 20, according to a note from the office of the parliamentarian leading the legislation published Wednesday.

A spokesperson for Werner Langen, the rapporteur on the legislation, said the reason for the delay was “to have more time for discussion.”

Emir is expected to introduce fresh rules on over-the-counter derivatives trading, trade repositories and centralized counterparties, amid a global drive to make derivatives markets more transparent.

The Group of 20 decided in 2009 that all standardized over-the-counter derivatives contracts should be traded on exchanges or electronic platforms, and cleared though central counterparties by the end of 2012.

The members of parliament who are in charge of drafting Emir are in the process of evaluating which derivatives will require clearance, and if foreign exchange contracts could be included in that list.

After the parliament’s economic committee votes on its bill, the entire parliament will have to sign off. Then the parliament meets with the European Commission and the European Council to make a final decision, before handing off the task of conducting additional research and studies to the European Securities and Markets Authority.

-By Riva Froymovich, Dow Jones Newswires; +32 2 741 1489; riva.froymovich@dowjones.com

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