34 Amendments of Jean-Paul GAUZÈS related to 2010/2008(INI)
Amendment 12 #
Motion for a resolution
Recital D
Recital D
D. whereas, at the end of June 2009, the volume of over-the-counter (OTC) derivatives amounted worldwide to US$ 605 tn and, as a result of excessive leveragenotional amounts of all types of OTC contracts stood at US$605tn, gross market values, which provide a measure of market risk, at US$25trn and gross credit exposures, which take into account bilateral netting agreement, at US$3.7trn and; whereas, in a context of excessive leverage, undercapitalised banking system and the losses resulting from structured finance assets, OTC derivatives have helped to make large market participants mutually dependent in an opaque manner,even when they were regulated entities.
Amendment 17 #
Motion for a resolution
Recital E
Recital E
E. whereas OTC derivatives have become increasingly complex and counterparty credit risk has not been correctly assessed and priced, and whereas there are considerable weaknessesimportant for hedging and trading purposes for a wide variety of market participants and whereas there are some areas of improvement in how derivatives markets are organised, provided that they are assessed asset class by asset class and that they are not ultimately detrimental to liquidity,
Amendment 31 #
Motion for a resolution
Recital F
Recital F
Amendment 36 #
Motion for a resolution
Recital G
Recital G
G. whereas most derivatives used by firms involve nothe systemic risk created by derivatives used by firms depends primarily on the size of the positions taken individually or collectively by these companies, with non-financial small and medium-sized enterprises presenting a limited systemic risk,
Amendment 50 #
Motion for a resolution
Recital I
Recital I
Amendment 58 #
Motion for a resolution
Recital I a (new)
Recital I a (new)
Ia. whereas the latest events involving the sale of OTC derivatives to local governments and the dealings with sovereign Credit Default Swaps reinforce the need for financial stability and market transparency to be primary goals for the drafting of legislation By European regulator;
Amendment 63 #
Motion for a resolution
Recital I b (new)
Recital I b (new)
Ib. whereas systemic risk associated with clearing houses is very likely to be considerable and growing and unfettered access to information on transactions for regulators is essential for market and prudential supervision, at least the transactions on derivatives products denominated in an EU currency, covering an underlying EU entity or involving EU financial institutions should be cleared, when eligible, and reported in clearing houses and repositories located, authorized and supervised in the EU, and which are covered by European laws on data protection,
Amendment 70 #
Motion for a resolution
Recital I c (new)
Recital I c (new)
Ic. whereas, the current Greek situation cannot lead to firm conclusions on the interaction between the sovereign CDS and underlying bond markets because of a blatant lack of information but precisely calls for very strong guarantees in terms of access to comprehensive information and empowerment of supervisors so that they can react to diverse and unexpected situations,
Amendment 76 #
Motion for a resolution
Paragraph 1
Paragraph 1
1. Welcomes the Commission’s initiative for better regulation of derivatives, and in particular OTC derivatives, and backs the calls for standardisation of contracts, the establishment of trade repositories, the strengthening of central clederivatives contracts including through regulatory incentives in the CRD regarding houses and the extensive use of organised trading venuesoperational risk;
Amendment 79 #
Motion for a resolution
Paragraph 1
Paragraph 1
1. Welcomes the Commission’s initiative for better regulation of derivatives, and in particular OTC derivatives, and backs the calls for process and legal standardisation of contracts, the establishment of trade repositories, the strengthening of central clearing houses and the extensive use of organised trading venueson a homogeneous basis across Europe;
Amendment 82 #
Motion for a resolution
Paragraph 1 a (new)
Paragraph 1 a (new)
1a. Supports a strong EU regime for the whole chain of post-market infrastructures covering all types of financial instruments: trade repositories, central clearing houses as well as central securities depositories, which ensure secure reconciliation of all transactions;
Amendment 86 #
Motion for a resolution
Paragraph 1 b (new)
Paragraph 1 b (new)
1b. Calls for more transparency on all transactions, both pre-trade for all instruments that qualifies for the extensive use of organised trading venues and in all cases, for increased post-trade trade transparency through reporting of all transactions to repositories, to the benefit of both regulators and investors;
Amendment 91 #
Motion for a resolution
Paragraph 2
Paragraph 2
2. Backs the call for the compulsory introduction of independent clearingCCP clearing independent from key market participants or risk takers between financial institutions for all standardisedzable derivatives, so as to ensure better assessment of counterparty credit risk, and backs the aim ofsupports trading as many standardised derivatives as possible, in future, on organised marketstrading venues as defined in MiFID;
Amendment 95 #
Motion for a resolution
Paragraph 2
Paragraph 2
2. Backs the call for the compulsory introduction of independent clearing between financial institutions for all standardisedthe maximum of eligible for clearing derivatives, so as to ensurmaximise bnetter assessment of counterparty credit risk, and backs the aim of trading as many standardised derivatives as possible, in future, on organised markets;ing of positions and contribute to better framed assessment of counterparty credit risk.
Amendment 97 #
Motion for a resolution
Paragraph 2
Paragraph 2
2. Backs the call for the compulsory introduction of independent clearing between financial institutions for all standardisedclearable derivatives, so as to ensure better assessment of counterparty credit risk, and backs the aim of trading as many standardisedclearable derivatives as possible, in future, on organised markemarkets that are regulated or equivalent to a regulated market within the meaning of the Directive on markets in financial instruments;
Amendment 113 #
Motion for a resolution
Paragraph 4
Paragraph 4
4. Notes that, as regards regulation, a distinction must be made between derivatives totailor- made derivatives drawn up for the specific purpose of hedgeing firms’ transactions and purthe standard derivatives available on the financial market derivatives;
Amendment 127 #
Motion for a resolution
Paragraph 6
Paragraph 6
6. Is of the opinion that, through clearing, collateral and mark to market arrangements and by adjusting capital requirements to reflect the risk of any particular trade, counterparty credit risk can be reduced for contracts cleared centrally via central counterparty clearing facilities (CCPs) and non- centrally cleared contracts; backs the Commission in proposing higher capital requirements for financial institutions in the case of bilateral contracts, provided that central clearing is dispensed with;
Amendment 128 #
Motion for a resolution
Paragraph 6
Paragraph 6
6. Is of the opinion that, through clearing arrangements and by adjusting capital requirements, counterparty credit risk can be reduced for contracts cleared centrally viathrough clearing by central counterparty clearing facilities (CCPsS) and, for non-centrally cleared contracts, by adjusting capital requirements; backs the Commission in proposing higher capital requirements for financial institutions in the case of bilateral contracts, provided that central clearing is dispensed withcontracts for which collateral is exchanged bilaterally by parties and which are not subject to central clearing;
Amendment 134 #
Motion for a resolution
Paragraph 7
Paragraph 7
7. Backs the Commission in its intention to confer responsibilities for authorising European and third-country clearing houses on the European Securities and Markets Authority (ESMA) and see considerable legitimacy in their supervision by this same Authority, inter alia pooling of supervisory expertise in one body and the fact that the risk associated with a CCP will be crossborder, chiefly aligned with the perimeter of financial institutions participating in the CCP;
Amendment 141 #
Motion for a resolution
Paragraph 8
Paragraph 8
Amendment 160 #
Motion for a resolution
Paragraph 9
Paragraph 9
9. Backs the introduction of repositories for all trades and positions not exchange- CCP-cleared and calls for trade repositories to be regulated and supervised under EMSMA direction;
Amendment 176 #
Motion for a resolution
Paragraph 12
Paragraph 12
12. Backs the Commission in its plan to establish CCPs under independent European responsibility which are independent from key market participantEurope-based CCPs for the clearing of derivatives;
Amendment 178 #
Motion for a resolution
Paragraph 12
Paragraph 12
12. Backs the Commission in its plan to establish CCPs under independent European responsibility which are independent from key market participants;and within a strong and consistent governance and risk management framework and calls for the establishment of European infrastructures for certain key euro denominated instruments like eligible for clearing credit default swaps.
Amendment 184 #
Motion for a resolution
Paragraph 13
Paragraph 13
13. Assumes that, in the legislative proposal, the Commission will make bilateral clearing for non-financial institutionall market participants possible on the basis of an understandable risk assessment in future, too, if graduated capital charges for financial institutions are ensured;.
Amendment 187 #
Motion for a resolution
Paragraph 13
Paragraph 13
13. Assumes that, in the legislative proposal, the Commission will make the bilateral clearingexchange of collateral for non- financial and non-systemic institutions possible on the basis of an understandable risk assessment in future, too, if graduappropriated capital charges for are imposed on financial institutions are ensured;
Amendment 220 #
Motion for a resolution
Paragraph 16
Paragraph 16
16. Is of the view that high-risk derivatives from non-financial institutions must also be regulated, with a requirement for all clearable derivatives to be cleared by a CCP, despite accounting, according to the market analyses to hand, for a small proportion of the total;
Amendment 223 #
Motion for a resolution
Paragraph 16 a (new)
Paragraph 16 a (new)
16a. Calls for any derivative position, whether taken by financial or non- financial institutions, above a certain threshold to be specified by ESMA to be centrally cleared by a CCP;
Amendment 230 #
Motion for a resolution
Paragraph 17
Paragraph 17
17. Notes that for trading commodities and agricultural products, but also greenhouse gas emission allowances, it must be ensured that that market operates transparently in order to stem specbe it OTC or on-exchange and, is not subject to market manipulation;.
Amendment 232 #
Motion for a resolution
Paragraph 17
Paragraph 17
17. NCalls for enabling the ESMA and the competent authorities with a wide range of powers to effectively tackle dysfunctions in derivatives markets, e.g. banning naked selling of CDS or requiring physical settlement of derivatives and setting position limits to avoid undue concentration of dealers on some market segments; in particular, notes that for trading commodities and agricultural products, but also greenhouse gas emission allowances, it must be ensured that that market operates transparently in order to stem speculation and avoid undue volatility;
Amendment 240 #
Motion for a resolution
Paragraph 17 a (new)
Paragraph 17 a (new)
Amendment 244 #
Motion for a resolution
Paragraph 18
Paragraph 18
18. Underlines the fact that regulation which is as consistent as possible and internationally coordinated is desirable, but, since there are differing viewpoints and stakes, considers separatedifferent European regulation for derivatives to be necessary should international targets be detrimental to either market liquidity or the positioning of European financial centres or contrary to other European legislation, and;
Amendment 245 #
Motion for a resolution
Paragraph 18
Paragraph 18
18. Underlines the fact that regulation which is as consistent as possible and internationally coordinated is desirable, but that, since there are differing viewpoints, considers separate European regulation for derivatives to be necessaryshould take account of Europe’s specific circumstances;
Amendment 248 #
Motion for a resolution
Paragraph 18 a (new)
Paragraph 18 a (new)
18a. Calls for a cohesive approach within Europe in order to leverage on each financial centre strengths and take the opportunity of this crisis to move a step further in the integration and development of an efficient European financial market;
Amendment 250 #
Motion for a resolution
Paragraph 18 b (new)
Paragraph 18 b (new)
18b. Calls to support industry initiatives and acknowledge their value since they can, in some instances, be as appropriate as and supplemental to legislative action.