CFTC set to declare overseas swaps rules inadequate - WSJ
Dec 16 (Reuters) - The Commodities Futures Trading Commission (CFTC) is set to force overseas financial firms to comply with its set of rules governing swaps, saying that the multiple rules developed by overseas regulators were not strict enough, the Wall Street Journal reported, citing an official familiar with the process.
The U.S. swaps regulator is finalizing its recommendations on rules developed by the European Union and five other jurisdictions and is set to declare many of the rules as insufficient, including rules governing how firms report swaps to a data repository, the newspaper reported. ()
The CFTC could not be reached for comment by Reuters outside of regular business hours.
In November, the Commision made clear that foreign banks doing derivatives deals with foreign clients from Wall Street or other U.S. offices still needed to comply with some of the agency's rules for swaps trading.
U.S. regulators are pushing to move much of the $693 trillion the over-the-counter derivatives market to new electronic platforms known as Swap Execution Facilities (SEF), which will increase transparency and help prevent the recurrence of the 2008 crisis. The SEFs started trading on Oct. 2.