EACT News
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Comments concerning the Proposal for a Council Directive implementing enhanced cooperation in the area of a financial transaction tax
14/5/2013
The EACT has issued a position paper on the proposal for a Council Directive implementing enhanced cooperation in the area of a financial transaction tax (FTT).
We believe that the FTT would have a serious unintended consequence - its negative impact on European companies as well as pension funds and individuals, by for example increasing the cost of funding and managing business risks and tightening credit conditions. We are therefore strongly urging Brussels to take the real economy's views into consideration in the legislative debate on FTT.
Please click here to read the EACT's comments.
EACT & US Coalition for Derivatives End-Users submit responses to the BIS-IOSCO Consultations on Margin Requirements for Non-centrally-cleared Derivatives
19/3/2013
The EACT has, together with the US Coalition for Derivatives End-Users, submitted responses to the BIS-IOSCO Consultations on Margin Requirements for Non-centrally-cleared Derivatives. The responses highlight that non-financial end-users should be exempt from mandatory margining requirements for OTC derivative trades or only be required to post margin above a certain threshold. Introducing mandatory margining requirements would impose unnecessary cost and liquidity burdens to non-financial end-users, which could push some end-users to stop using derivatives which are however essential for corporates to be able to hedge commercial risk. The fact that non-financial end-users' derivative exposures pose little to no systemic risk should be taken into account when drafting the BIS-IOSCO recommendations.
For the first consultation (July 2012), the joint submission can be viewed here and the BIS-IOSCO consultation document can be found here.
For the second consultation (February 2013), the joint submission can be viewed here and the BIS-IOSCO consultation document can be found here.
EACT Letter to Internal Market Commissioner Michel Barnier
19/3/2013
The EACT has addressed a letter to the Internal Market Commissioner Michel Barnier in order to highlight the need for a structural dialogue between real economy representatives and the regulators, in particular the European Securities and Market Authority (ESMA). Click here to view the letter.
EACT makes its submission to the UK government's LIBOR review
5/9/2012
The EACT highlights the governance weaknesses associated with the LIBOR process and its support for regulatory oversight and the threat legal sanctions to deal with any future manipulation. We highlight that any replacement for LIBOR must provide for continuity and not disadvantage companies with LIBOR-based contracts. We also draw attention to the support expressed by treasurers for overnight index swaps (OIS) as a possible eventual replacement for LIBOR.
Please click here to read the EACT's submission to the UK government's LIBOR review, and here to read the accompanying press release.
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