An action to break the regulation commodity derivatives trading has been launched by the France. In order to draft common rules and to take the necessary steps, it is calling the European Union and G20 to convene on Tuesday.

A detailed proposal has been sent by France to the European Union and Group of 20 economic powers.

There are some improvements, which France wishes to see in the new EU legislation to stable the commodities market.

Full range of assimilated products and commodity derivatives on the basis of their broad definition of base products were involved in the proposal.

The proposal covers an analysis of association between the management of physical markets and the regulation of trading in commodity derivatives.

According to the France, more negotiations between the financial markets and those regulating physical markets is required. The regulation and management of all participants in the market must be ensured.

A system should be considered where the specific approach is required for derivatives that are over the counter in these markets.

Measures including increase in transparency mainly in the physical markets, to ensure regulators are keeping a check on the overall operation of the markets and to enhance price-formation mechanisms, should be taken into consideration.