EU’s Barnier Confident of Beating Deadline for U.S. Swaps Deal
Michel Barnier, the EU’s financial services chief, said he’s confident a deal can be reached with the U.S. to resolve disagreements over swaps rules before a July 12 deadline.
“We have worked a lot with Gary Gensler’s team,” Barnier told reporters today in Brussels, in reference to the chairman of the U.S. Commodity Futures Trading Commission. “One or two outstanding points remain, so we have progressed a lot,” he said.
The international reach of CFTC swap-trading requirements has been one of the most controversial elements of the agency’s Dodd-Frank Act rules, prompting opposition from financial companies including Goldman Sachs Group Inc. (G) and Barclays Plc. (BARC) The CFTC has faced criticism from European and Asian regulators over a rule requiring trades to be guaranteed at clearinghouses and traded on exchanges or other platforms, with nations warning of overlapping requirements and extra costs for their banks.
The EU and U.S. are seeking to broker a deal on the measures ahead of Friday’s vote by the U.S. agency. The vote coincides with the expiry of temporary exemptions from the rules for overseas-based companies.
“We are working a lot, and I’m confident that we’ll reach an agreement,” Barnier said, adding that he will travel to the U.S. next week for meetings with regulators.
Mark Carney, chairman of the Financial Stability Board, has said that the FSB will report to the Group of 20 nations in September on efforts by regulators to resolve “outstanding cross-border issues” for swaps regulation, “including gaps, overlaps and inconsistencies.”
The FSB brings together regulators, central bankers and finance ministry officials from the G-20.
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