European Commission proposes restrictions on financial practices

RESTRICTIONS on some of the practices blamed for triggering the economic crisis have been put forward by the European Commission as part of a major overhaul package.

They deal with credit default swaps, short selling and the $600 trillion derivatives market, and are designed to make it easier for regulators to detect risk in sovereign debt markets and act.

Outlining the latest tranche of measures, Internal Market Commissioner Michel Barnier said: “No financial market can afford to remain a wild west territory. No player, no market, no territory must remain outside supervision.”