The EACT has responded to the latest (and final) round of consultation on the regulation of the use of derivatives, which closes at the end of this week.  You can find our submission by clicking here.

The EACT response includes the following key points:

• We favour transparency and support the ‘information threshold’ provided certain simple and pragmatic conditions are met;
• We think the clearing threshold is not just unnecessary but also systemically dangerous.  Instead of preventing the next crisis its implementation could trigger such a crisis; and
• There is a real threat of regulatory divergence with the US if the EU goes ahead as it proposes.  This will be detrimental to employment and growth in Europe and the EACT is clearly opposed to tolerating regulatory arbitrage.