EU rules targets City's derivatives business - reports

Reduce 'excessive' exposure

New rules from the European Commission to promote financial stability will see the European Union take a share of the City’s multi-trillion pound derivatives trading business.

The regulations would govern the clearing houses that act as the middle men in derivatives trades. The move is required to alleviate the risk to financial stability in Europe of having so much derivatives trading clearing concentrated in London, according to the European Commission, as reported by The Telegraph. Valdis Dombrovskis, the Commission's executive vice-president, said: "We need to reduce our excessive exposure to non-EU clearing houses because it poses significant risks to our market stability."  Government U-turns on regulation call in power The plans would bring a g...