Communications on crisis management in banking sector and on derivatives The news: As part of its continuing response to the financial crisis, the European Commission will present two Communications. The first, on cross-border crisis management in the banking sector, will set out the issues that need to be addressed in order to establish a new EU framework in this area. The second, on derivatives, follows an earlier Communication issued in July 2009 which stated that "the Commission will draw operational conclusions before the end of its current mandate and present appropriate initiatives, including legislative proposals as justified, before the end of the year". The background: Crisis management: The financial crisis has highlighted the importance of putting in place effective cross-border arrangements to handle banking crises. There have been a number of high-profile banking failures over the past 18 months which have revealed serious shortcomings in the existing arrangements. Crisis management remains essentially a national competence to be coordinated in cross-border situations on the basis of a non- binding memorandum of understanding signed in 2008. A new EU framework should equip authorities with the right tools and the right legal environment to handle cross-border banking failures. Derivatives: In October 2008 Commissioner McCreevy issued a statement 'Time for regulators to get a better view of derivatives' and set up an industry working group to find a solution to the clearing of credit default swaps (CDS). Following this, in February 2009 nine global dealers committed to the use of one or more European Central Counterparties for clearing of European-referenced Credit Default Swaps (CDS). This was the point of departure for a wider review of the role played by derivatives markets in the financial crisis and an assessment of the possible need for measures to ensure that they pose no risk to financial stability. In July 2009 the Commission then put forward its consultative Communication on ensuring efficient, safe and sound derivatives markets. The event: A press conference with Commissioner McCreevy will take place in the Berlaymont press room, Brussels (time tbc). Available on EbS The sources: IP/09/1083: Financial services: Commission outlines ways to strengthen the safety of derivatives markets MEMO/09/314: Derivatives Markets Frequently Asked Questions MEMO/09/77: Commissioner Charlie McCreevy welcomes Industry Commitment to EU Central Counterparty for CDS MEMO/08/679: First meeting of the working party on derivatives European Commission's websites: http://ec.europa.eu/internal_market/bank/index_en.htm http://ec.europa.eu/internal_market/financial-markets/news/index_en.htm Commissioner McCreevy's website: http://ec.europa.eu/commission_barroso/mccreevy/index_en.htm The contacts: Oliver Drewes +32 2 299 24 21 oliver.drewes@ec.europa.eu 11 - Main contents
| date | October 22, 2009 |
|---|---|
| city | Brussels, Belgium |
| location | Berlaymontgebouw  |
| attending | Ch. (Charlie) McCreevy i et al. |
| organisation | European Commission (EC) i |
As part of its continuing response to the financial crisis, the European Commission will present two Communications. The first, on cross-border crisis management in the banking sector, will set out the issues that need to be addressed in order to establish a new EU framework in this area. The second, on derivatives, follows an earlier Communication issued in July 2009 which stated that "the Commission will draw operational conclusions before the end of its current mandate and present appropriate initiatives, including legislative proposals as justified, before the end of the year".
Crisis management: The financial crisis has highlighted the importance of putting in place effective cross-border arrangements to handle banking crises. There have been a number of high-profile banking failures over the past 18 months which have revealed serious shortcomings in the existing arrangements. Crisis management remains essentially a national competence to be coordinated in cross-border situations on the basis of a non-binding memorandum of understanding signed in 2008. A new EU framework should equip authorities with the right tools and the right legal environment to handle cross-border banking failures. Derivatives: In October 2008 Commissioner McCreevy issued a statement 'Time for regulators to get a better view of derivatives' and set up an industry working group to find a solution to the clearing of credit default swaps (CDS). Following this, in February 2009 nine global dealers committed to the use of one or more European Central Counterparties for clearing of European-referenced Credit Default Swaps (CDS). This was the point of departure for a wider review of the role played by derivatives markets in the financial crisis and an assessment of the possible need for measures to ensure that they pose no risk to financial stability. In July 2009 the Commission then put forward its consultative Communication on ensuring efficient, safe and sound derivatives markets.
A press conference with Commissioner McCreevy will take place in the Berlaymont press room, Brussels (time tbc).
Available on EbS
IP/09/1083: Finan cial services: Commission outlines ways to strengthen the safety of
derivatives markets
MEMO/09/314: Derivatives Markets Freque ntly Asked Questions
MEMO/09/77: Commissioner Charlie McCreevy welcomes Industry Commitment to EU
Central Counterparty for CDS
MEMO/08/679: First meeti ng of the working party on derivatives
European Commission's websites:
http://ec.europa.eu/internal_market/bank/index_en.htm
http://ec.europa.eu/internal_market/financial-markets/news/index_en.htm
Commissioner McCreevy's website:
http://ec.europa.eu/commission_barroso/mccreevy/index_en.htm
Oliver Drewes
+32 2 299 24 21
11
The European Commission is the executive body of the EU and runs its day-to-day business. It is made up of the College of Commissioners, 27 European Commissioners, one for each member state, who are each responsible for one or several policy areas. In addition, the 'Commission' also refers to the entire administrative body that supports the Commissioners, consisting of the Directorates-General and the Services.
The European Commission is the sole EU body capable of proposing new legislation. The Commission also performs an oversight function, monitoring whether European legislation is properly implemented in the member states. In the event of non-compliance, the Commission can coerce a member state to comply by starting a legal procedure at the European Court of Justice.