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Finance: Trading of Derivatives

Volume 711: debated on Monday 1 June 2009


Asked by

To ask Her Majesty's Government whether they will introduce measures regarding the transparency of the trading of derivatives and to enable regulators to limit the amount of derivatives that a company can sell or that any institution may hold. [HL3765]

Section 19 of the Financial Services and Markets Act 2000 requires that anyone dealing in, or arranging deals in, investments be authorised by the Financial Services Authority. This includes firms or individuals trading in derivatives.

The Government support industry initiatives to clear more derivative products through central counterparties and international initiatives to update the regulations governing the derivatives market.