The ETUC has been highly critical of all unregulated parts of financial markets. The significant role played in the current financial crisis by derivatives in general and Credit Default Swaps (CDS) in particular has led the ETUC to participate in the public consultation procedure on derivatives http://ec.europa.eu/internal_market/consultations/docs/2010/derivatives/100614_derivatives.pdf and on short selling http://ec.europa.eu/internal_market/consultations/docs/2010/short_selling/consultation_paper_en.pdf, both launched by the European Commission to prepare legislative proposals over the summer.

The risks associated with CDS are especially present in the ‘over the counter’ (OTC) derivative markets which are characterised by non-transparent, private contracting with limited public information, and a complex web of mutual dependence. They have largely undermined financial stability and contributed to uncertainty. The prospects for very short-term gains has been one of the main drivers behind speculative attacks against the euro zone, in particular sovereign bonds issues by south European member states.

  Public consultation on derivatives and market infrastructures. Submission from the ETUC in cooperation with UNI Europe Finance.

  Public consultation on short selling. Submission from the ETUC in cooperation with UNI Europe Finance.