FIA has published a position paper welcoming the European Commission’s Market Integration and Supervision Package and setting out targeted recommendations to strengthen the framework.
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The paper highlights the need for 24/7 clearing and risk management to accompany 24/7 trading, ensuring sufficient liquidity in the markets, considering operational risk and utilising existing market principles and regulations to provide a roadmap.
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FIA has responded in support of the Financial Conduct Authority’s proposal to increase the clearing threshold for commodity derivatives. Raising the clearing threshold is an important and urgent corrective measure.
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FIA welcomes OSE’s proposal to introduce additional weekly expiries, noting that a broader range of short‑dated options can support more flexible and precise risk management for market participants.
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The response outlines proposals for a better rulemaking process in the EU and lists examples where an unlevel playing field between EU banks and global competitors has been identified.