Dec 16 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.