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.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from DLA Piper
News from The Lawyer
Briefings from DLA Piper
The Australian Taxation Office released a draft ruling on the Goods and Services Tax treatment of bitcoin transactions on 20 August 2014.
DLA Piper’s ‘Life sciences: patent extension strategies and antitrust global update’ video covers global antitrust and competition issues including product hopping and reverse payment patents.
Analysis from The Lawyer
Regulators are ramping up the pressure in the aftermath of recession, leaving firms to compete for compliance and restructuring work
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.