WASHINGTON Feb 12 U.S. derivatives regulators
said on Wednesday they would relieve U.S. banks from having to
comply with some swaps rules for trades executed on overseas
platforms, in a move designed to ease ongoing tensions with
Commodity Futures Trading Commission Acting Chairman Mark
Wetjen announced the plan in a call with reporters, saying the
CFTC and the European Union had made "significant progress" in
harmonizing cross-border swaps rules.
The Dodd-Frank Wall Street reform law of 2010 imposed
sweeping new regulations on the over-the-counter derivatives
It requires swap dealers to set aside capital and margin,
and it also moves many trade onto regulated platforms known as
"swap execution facilities" or SEFs in an effort to help firms
get better, more transparent prices.
Wetjen said the CFTC's relief will mean that
European-regulated trading platforms will not need to register
with U.S. regulators.
In addition, U.S. banks that conduct trades on these
overseas platforms will also not have to face certain U.S.