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Brussels blog by some wire service journalists

EU nears tougher derivatives rules

A complex web

By GABRIELE STEINHAUSER

LUXEMBOURG (AP) — European Union finance ministers on Tuesday took an important step toward making safer the trading of complicated financial instruments that have been blamed for worsening the global financial crisis.

If approved by the European Parliament, new EU rules will require trades in most derivatives that are not done on a regulated exchange to pass through clearing houses. Clearing houses act as an intermediary between buyers and sellers and absorb losses if one party defaults on the transaction.

All deals will also have to be registered in new data centers to give regulators a better idea of what is going on in the market and spot risks as they build up.

READ THE FULL STORY HERE.

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