On 15 September 2010, the European Commission (“EU Commission”) tabled its legislative proposal (the “Proposal”) for a Regulation on OTC derivatives, central counterparties and trade repositories (the “Regulation”).1

The draft regulation, aimed at improving the transparency and safety of the over-the-counter (“OTC”) derivatives market, is very much in line with the Commission’s previous consultation papers.2

It is also intended to be aligned with the U.S. Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”) on key issues (e.g., partial exemption for non-financial counterparties), with the aim of ensuring a level playing field between the European Union (“EU”) and U.S. and to reduce opportunities for regulatory arbitrage.

As with the Dodd-Frank Act, however, there still remain many details to be filled in by future regulation.

We summarise below the key provisions contained in the draft Regulation.

Please see full bulletin below for more information.