| WASHINGTON, March 21
WASHINGTON, March 21 The U.S. derivatives
regulator on Friday gave European trading platforms more time to
register and meet strict new rules to make the market more
transparent, in anticipation of comparable rules abroad.
The delay was issued by the agency in a so-called no-action
letter after an agreement the Commodity Futures Trading
Commission struck with the European Union in February, which
will in practice affect firms in London only.
The CFTC at the time said it expected the UK's Financial
Conduct Authority to have rules comparable to its own in place
by March 24, and that foreign companies would be granted relief
from its rules, if they so requested.
The platforms to trade swaps now have until May 14 to
register, or so much earlier as the agency finds they have
signed up with a European regulator with comparable rules.
The CFTC also said it would adjust the conditions companies
would have to meet, and that it would elaborate on that in
another statement expected next week.
The CFTC last year publicly argued with the European Union
as it sought broad sway over foreign companies doing business
with U.S. clients or trading out of U.S. offices.
It has also been sued by U.S. banks over so-called
cross-border rules. The banks argue that the United States has
no jurisdiction over what they do abroad.
The February decision had been anticipated by London firms,
which do the bulk of the business with U.S. banks. Only swaps
broker ICAP had sent in registration paperwork for its
London unit to avoid any risk of noncompliance.
The $630 trillion global swaps market, which was at the
center of the 2007-09 financial crisis, is dominated by large
investment banks such as Bank of America, JP Morgan
Chase & Co and Citigroup.
(Editing by Grant McCool)