EU mulls penalties to control derivatives trade
News Article
February 9, 2011
The European Union's executive is examining penalties on derivative trading, according to a document released on Wednesday, to force controls on the opaque sector that has been blamed for spiraling grain prices.
Michel Barnier, the top EU official in charge of changing the rules of finance, wants to force curbs on a global market for derivatives. He announced possible penalties to force traders to keep extra capital if they do not route their business through central clearing houses, which connect traders, record their activity and step in if a deal breaks down.