UK compromises on derivatives bill

City A.M. Reporter
CHANCELLOR George Osborne has backed down on one of his key demands that all derivatives trading be immediately covered by new EU rules but won some smaller concessions on controlling a market once described as the “Wild West”.

For Osborne, who interrupted his attendance at the Conservative party’s annual conference to make the trip to persuade EU finance minister to change the draft law, the deal allowed him to claim a partial victory.

He won concessions, including one that waters down the power of European regulators to sideline British authorities.

In another concession, the European Commission, which writes the first draft of laws for the 27-country EU, also pledged to reflect Britain’s concerns in a new raft of market rules.