EC and CFTC announce a path forward on cross-border regulation of OTC derivatives
On 11 July 2013, the Commodity Futures Trading Commission (CFTC) and the European Commission (EC) announced a high-level joint understanding (referred to in the announcement as the ‘path forward’) regarding the approach to the cross-border regulation of over-the-counter (OTC) derivatives. The announcement comes one day before the CFTC is scheduled to hold a highly anticipated open meeting to consider its final cross-border guidance and associated phase-in for compliance.
To address market participants’ concerns that cross-border transactions in derivatives could result in duplicative, conflicting or inconsistent regulatory burdens, and to reduce the incentive to engage in regulatory arbitrage, the CFTC and the EC have generally agreed that the applicable regulators should, where appropriate, defer to the regulatory requirements in another jurisdiction when it is ‘justified’ by the quality of the regime in that jurisdiction. At the same time, the CFTC and the EC are focused on ensuring that their co-ordinated cross-border approach to regulating derivatives does not permit overseas guaranteed affiliates and branches of US and European Union persons to operate outside of their collective regulatory regimes.
While the announcement is light on details, it does contain certain statements that are noteworthy…
If you are registered and logged in to the site, click on the link below to read the rest of the DLA Piper briefing. If not, please register or sign in with your details below.
News from DLA Piper
News from The Lawyer
Briefings from DLA Piper
The Financial Report — Fed study questions new money market rules; Singapore updates audit committee guidebook; and more
DLA Piper has released the latest version (Volume 3, No.16) of The Financial Report, featuring news and analysis from across the financial sector.
The National Bank of Ukraine has toughened requirements for the mandatory sale of international currency proceeds that was temporarily introduced in November 2012.
Analysis from The Lawyer
Shearman & Sterling is making its presence felt in the City, squaring up to magic circle firms and looking to muscle in on key relationships. Private equity house Bridgepoint is one outfit that has had its head turned by the US firm.
A new breed of lawyer is smoothing the path for companies entering emerging or unstable jurisdictions