By Huw Jones
LONDON, Feb 2 (Reuters) – Banks should not be forced to shift privately-negotiated derivatives transactions onto exchanges, Britain’s Financial Services Minister, Paul Myners, said on Tuesday.
“We do not see the need for mandating trading of standardised derivatives on organised trading platforms,” Myners told a committee of parliament’s upper chamber.
The G20 group of countries agreed last year that standardised over-the-counter derivatives should be centrally cleared and, where appropriate, traded on an exchange or other type of electronic platform.
This is seen as cutting risk and increasing transparency in a sector whose opaqueness alarmed regulators during the height of the financial crisis.
U.S. insurer AIG, which nearly collapsed, and Lehman Brothers bank, which went bust in 2008, were both closely linked to the derivatives sector.