European and U.S. officials are meeting privately in Washington this week to discuss ways to coordinate rules governing swaps traded by Goldman Sachs Group Inc. (GS), JPMorgan Chase & Co. (JPM) and other firms, according to two people with knowledge of the matter.
The two-day session, in advance of a Nov. 7 public meeting on the issue, is hosted by the staff of the Commodity Futures Trading Commission and Securities and Exchange Commission, according to the people, who spoke on condition of anonymity because the meeting is closed to the public. The private meeting began today at CFTC headquarters and was slated to include representatives from the European Commission and European Securities and Markets Authority, according to one of the people.
Differences between European, U.S. and Asian swaps rules have made compliance difficult for the financial industry and threatened an end-of-the-year deadline for completing overhaul regulations, the Financial Stability Board said in a report on Oct. 31.
The international board has been monitoring progress to coordinate regulations in G-20 nations for overhauling swaps- oversight after largely unregulated trades helped fuel the 2008 credit crisis. The CFTC also faces an end-of-year deadline to implement rules mandated by the Dodd-Frank Act of 2010.
Progress to date in cross-border discussions between regulators “has been slow,” the FSB said in releasing the report. The disagreements risk “delaying the full and timely implementation” of the international rules.
Steve Adamske, CFTC spokesman, did not immediately respond to phone and e-mail messages for comment. The commission’s Global Markets Advisory Committee will meet publicly on Nov. 7 with international regulators and futures industry representatives on cross-border issues related to new derivatives rules.
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