The Commodities Futures Trading Commission released guidelines from several international authorities that aim to improve cross-border regulatory implementation of the over-the-counter derivatives market.
The proposals affect markets in Australia, Brazil, the European Union, Hong Kong, Japan, Ontario, Quebec, Singapore, Switzerland and the United States and came as a result of G20 leaders asking regulators in April to address these cross-border challenges.
The report also includes suggestions such as that regulatory authorities should consult with one another early and comprehensively “when equivalence or substituted compliance assessments are being undertaken.” In addition, the report says that regulators should take an outcomes-based approach for these assessments.
Other guidelines include creating a “framework for consultation on mandatory clearing determinations,” as well as making it easier for market participants and authorities to report and access trade repository information.
The report also suggests that foreign entities should be given “a reasonable but limited transition period” to implement the new requirements for OTC derivative trading, and regulatory agencies should stay flexible during this transition towards cross-border implementation.
G20 leaders will discuss the recommendations at the upcoming summit in Russia.
CFTC Issues Cross-Border Guidelines to Enforce Derivatives Reform
The Commodities Futures Trading Commission released guidelines from several international authorities that aim to improve cross-border regulatory implementation of the over-the-counter derivatives market.
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