Differing EU, U.S. Derivative Rules May Discriminate, Groups Say

Banks and other investors may face “discriminatory” and competing sets of rules when they trade in derivatives because of a lack of coordination between the U.S. and European Union, trade associations said.

Requirements being developed by the U.S. government and the European Commission may lead to “fragmentation of markets, protectionism and regulatory arbitrage,” the groups, which include the International Swaps and Derivatives Association and the Alternative Investment Management Association, said in a letter to Michel Barnier, the EU’s financial services chief, and Timothy F. Geithner, the U.S. treasury secretary.