Wolin Says U.S., EU Must Collaborate on Derivatives Oversight
The U.S. and Europe need to join forces on derivatives oversight to make sure that international firms can’t gain advantage by switching regulators, Deputy U.S. Treasury Secretary Neal Wolin said today in a speech at the London Stock Exchange.
Wolin endorsed the European Commission’s proposals on central clearing of derivatives trades, which mesh with U.S. efforts to reduce risk in those markets. The Dodd-Frank financial regulation bill calls for derivatives to be reported to trade repositories and handled by standardized exchanges where possible.
“We look forward to continued collaboration on their future work on derivatives trading and market abuse -- ensuring that we have open, transparent and non-discriminatory regimes, without geographic mandates, on both sides of the Atlantic,” Wolin said, according to the text released in Washington.
Wolin said other countries need to develop mechanisms for dismantling banks and other financial firms, similar to U.S. procedures for bank failures. He said international systems, sought by the Group of 20 nations as a way to avoid future financial crises, will need to build off work at the national level.
“By establishing stronger international coordination to prevent future crises, we will improve the soundness and the resilience of the global economy,” Wolin said.
To contact the reporters on this story: Mark Drajem in Washington at mdrajem@bloomberg.net Rebecca Christie in Washington at rchristie4@bloomberg.net;
To contact the editors responsible for this story: Christopher Wellisz at cwellisz@bloomberg.net
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