Cross-Border Swaps Deal to End U.S.-Europe Regulation Overlap
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U.S. and European Union financial regulators took a step toward bringing derivatives trading under an integrated framework of global regulation designed to reduce risks in the $633 trillion swaps market.
The accord, announced jointly yesterday in Brussels and Washington by the EU and the U.S. Commodity Futures Trading Commission, broke a deadlock over whether the U.S. could impose its rules on trades booked in Europe. Banks and other swaps traders said the deal reduces the chance they will be forced to comply with conflicting regulatory regimes.