Financial Services: EU Action

Mr. Gordon Prentice
To ask the Chancellor of the Exchequer what assessment he has made of the likely effects of proposed EU regulations on derivatives on businesses in the corporate sector which depend on very long-term hedging practices to manage risk and uncertainty; and if he will make a statement.

Sarah McCarthy-Fry
In December, HM Treasury and FSA published a paper called ‘Reforming OTC Derivative Markets, A UK Perspective’, available at:

www.fsa.gov.uk/pubs/other/reform_otc_derivatives.pdf

This paper sets out the UK's preliminary thinking on future regulation, both globally and in the EU, on derivatives issues, including the implications for corporates.