European Swaps Regulation - White Paper - Deutsche Börse Group: The Global Derivatives Market - A Blueprint for Market Safety and Integrity

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September 2009

From the white paper:

"In order to minimize this systemic risk and to create a well-functioning market, both safety and integrity need to be ensured. As such, a blueprint that effectively reduces the systemic risk in the derivatives market should incorporate the following guidelines:

  • Maximum use of derivatives trading on organized markets;
  • Maximum use of central counterparties where trading on organized markets is not feasible;
  • Bilateral collateralization of derivatives exposure (preferably handled by a third party) when organized trading or the use of CCPs is not feasible; and
  • Mandatory registration of open risk positions and reporting standards for all derivative contracts.

"A joint effort by market participants, infrastructure providers and regulators is required to strive for a swift and consistent implementation of the blueprint in order to restore and sustainably strengthen market safety and integrity."

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