Over-the-Counter Derivative Markets in the Light of EMIR Clearing Obligations and the Financial Transaction Tax

The European Financial Market is and will be subject to significant legal changes. At its current stage, the European Union has issued Regulations for the over-the-counter derivative market; under the European Market Infrastructure Regulation, these contracts must be cleared through central counterparties. Beyond that, several EU Member States are attempting to implement a common financial transaction tax that should increase financial market stability. The authors conclude that these two instruments are not sufficiently coordinated and thus further amendments to the current financial transaction tax proposal are necessary in order to provide a coherent European regulatory approach for the financial market.