26 Amendments of Pascal CANFIN related to 2010/2008(INI)
Amendment 5 #
Motion for a resolution
Recital A
Recital A
A. whereas derivatives play a largely useful role in spreading risk in the economyallowing some non-financial firms to manage the risks associated with the volatility of commodities prices, foreign exchange rates and interest rates, but differ considerably with regard to risk, operational arrangements and market participants,
Amendment 7 #
Motion for a resolution
Recital A a (new)
Recital A a (new)
Aa. whereas derivatives have played an important role in the financial crisis in spreading the risk in the financial system in an uncontrolled and opaque manner,
Amendment 8 #
Motion for a resolution
Recital A b (new)
Recital A b (new)
Ab. whereas AIG failure due to derivatives activities led to a bail-out with an estimated cost of 180 billion US dollars for US tax payers,
Amendment 9 #
Motion for a resolution
Recital A c (new)
Recital A c (new)
Ac. whereas speculation on derivatives products has exacerbated the volatility of the underlying commodities prices with a harmful impact on populations in the Europe Union and in developing countries,
Amendment 14 #
Motion for a resolution
Recital D a (new)
Recital D a (new)
Da. whereas recent researches have highlighted that certain complex derivatives generate insurmountable informational asymmetries which are prone to market abuses and manipulations,
Amendment 40 #
Motion for a resolution
Recital G
Recital G
G. whereas non-financial firms represent only 5% to 10% of the derivatives markets and that most derivatives used by firms involve no systemic risk,
Amendment 53 #
Motion for a resolution
Recital I
Recital I
I. whereas, as a rule, non-financial institutions’ interest rate, foreign-exchange and commodity contracts need no additional regulation, as long as derivatives position of such non-financial institution are non- significant,
Amendment 66 #
Motion for a resolution
Recital I a (new)
Recital I a (new)
Ia. whereas credit default swap (CDS), which are financial insurance products, are currently traded without any proper regulation,
Amendment 72 #
Motion for a resolution
Recital I b (new)
Recital I b (new)
Ib. whereas the speculation on Greek CDS proves that regulators need to have an immediate access to information and the possibility to limit speculative positions,
Amendment 73 #
Motion for a resolution
Recital I c (new)
Recital I c (new)
Ic. considers that beyond hedging price volatility through derivatives it is crucial to tackle the stake of volatility in itself; calls therefore for the strengthening and implementation of a broad set of mechanisms at the European, regional and international level in order to stabilize prices and incomes, such as supply management frameworks,
Amendment 98 #
Motion for a resolution
Paragraph 2
Paragraph 2
2. Backs the call for the compulsory introduction of independent clearing between financial institutions for all standardised derivatives, so as to ensure better assessment of counterparty credit risk, and backs the aim of trading as many standardised derivatives as possible, in future, on organised markets; insists that ESMA need to have the responsibility to impose mandatory clearing for standardised derivatives;
Amendment 109 #
Motion for a resolution
Paragraph 4
Paragraph 4
4. Notes that, as regards regulation, a dit ist inction must be made many cases impossible to make a clear distinction between derivatives used to hedge firms’ transactions and pure financial market derivativesrisks and pure speculative activities; considers that all actors, financial or non financial firms having significant positions on derivatives markets must be regulated and supervised;
Amendment 133 #
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); calls the Commission to give the direct supervision of CCPs to the ESMA in coordination with central banks;
Amendment 148 #
Motion for a resolution
Paragraph 8
Paragraph 8
8. Insists that neither must CCPs be organised by users, nor must their risk management systems be in competition with each other; considers that the standardization process cannot be driven by user-owned CCPs as users might have no interest in encouraging products standardization; considers that CCPs which are independent from key market participants might take excessive risks in order to maximise profit; Calls for a unique European CCPs providing its services at cost for users and managed by central banks and ESMA.
Amendment 153 #
Motion for a resolution
Paragraph 9
Paragraph 9
9. Backs the introduction of one unique European repositoriesy for all trades and positions not exchange- cleared and calls for trade repositories to be regulated and supervised under EMSA direction; Considers that almost immediate post- trade transparency should become the rule for all OTC derivatives;
Amendment 164 #
Motion for a resolution
Paragraph 9 a (new)
Paragraph 9 a (new)
9a. Considers that these reforms should lead to a reduction of derivatives’ market size;
Amendment 180 #
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; considers that CCPs should not be interconnected as it would lead to inappropriate supervision; considers that derivatives products with underlying assets in European currencies should be cleared in CCPs having an access to the central bank liquidity of the underlying currency of these assets; considers that European banks should, as a rule, clear their derivatives in European regulated CCPs;
Amendment 193 #
Motion for a resolution
Paragraph 14
Paragraph 14
14. Backs the Commission in its intention to provide for exemptions and lower capital requirements for SMEs’ bilateral derivatives as long as derivatives are non significant in the balance sheet of these SME;
Amendment 206 #
Motion for a resolution
Paragraph 15
Paragraph 15
15. Calls, as a matter of priority, for credit default swaps to be made subject to mandatory independent central clearing and, if necessary, checked to establish whether individual types of derivative with cumulative risks should only be conditionally authorised or even, on a case- by-case basis, prohibited; considers that CDS should be based on insurable interest principle which would oblige to hold underlying assets;
Amendment 212 #
Motion for a resolution
Paragraph 15 a (new)
Paragraph 15 a (new)
15a. Considers that dealers of CDS should have a special authorisation and regulation in order to guarantee that dealers of such products will be able to assume their commitments in case of severe markets conditions. The competent authorities should do regular stress tests to insure the solvency of CDS dealers in such conditions. CDS dealers must be obliged to have sufficient technical provisions as already in place for insurance companies. Any institution unable to comply with these requirements would not be allowed to sell CDS;
Amendment 216 #
Motion for a resolution
Paragraph 15 b (new)
Paragraph 15 b (new)
15b. Asks the Commission for a cost- benefit analysis of the credit default swaps development during the last ten years as the financial crisis has proved that the current highly complex financial system is neither efficient nor stable;
Amendment 217 #
Motion for a resolution
Paragraph 15 c (new)
Paragraph 15 c (new)
15c. Considers that complex derivatives should be submitted frequently to ex-post scrutiny based on new evidence and that the revision of the market abuses directive should include the potential use of informational asymmetries generated by these products;
Amendment 234 #
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 speculation; Insists that financial actors acting on commodities markets needs to be carefully monitored and that European and national regulatory authorities must have the possibility to set limits to these positions or impose physical settlement to derivatives contracts in order to stem speculation which has a harmful impact on populations in the Europe Union and in developing countries;
Amendment 246 #
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, considers separate European regulation for derivatives to be necessary as strengthening the European financial institutions resiliency is key for the financing of SMEs and households;
Amendment 247 #
Motion for a resolution
Paragraph 18 a (new)
Paragraph 18 a (new)
18a. Calls the Commission to set a figure target that at least 80% of the derivatives market moves to central clearing as due to their specific nature OTC products should not represent significant part of the derivatives market and should become the exception;
Amendment 251 #
Motion for a resolution
Paragraph 19 a (new)
Paragraph 19 a (new)
19a. Welcomes the Commission’s intention to submit legislative proposals on CDS;