US regulator adopts cross-border guidance for swaps rules
July 13, 2013
The US Commodity Futures Trading Commission voted on Friday to adopt final guidance laying out how its derivative rules will apply to foreign companies dealing with US firms. The US swaps regulator reached a deal this week with the European Union on how to handle the divisive issue regarding the $630 trillion derivatives market. The two sides said they would rely more on each others’ rules and give banks some leeway that may spare them from the most stringent oversight.
Global banks had been anxiously awaiting a decision on how the rules would apply elsewhere. They said unless a deal were reached, they could be subject to conflicting sets of rules in different jurisdictions. The CFTC voted 3-1 in favour of the guidance, with Republican Commissioner Scott O’Malia dissenting. Courtesy Reuters
Published in ZaraiMedia.com