The fia and SIFMA released a white paper on the us entry into non-us trading venues and CCP


The fia and SIFMA released a white paper on the us entry into non-us trading venues and CCP

Washington, d.c., and London – the FIA and SIFMA issued a white paper today, proposing proposals to improve the U.S. market for international swaps.

Currently, unless the commodity futures trading commission relevant regulatory framework of Europe or Asia case assessment, U.S. companies can’t go into the American swaps places or central counterparties, to decide whether to postpone to national regulators. This has brought some problems to American swaps dealers and their customers, leading to a spread of international swap markets to different pools of liquidity.

The FIA and SIFMA welcomed the CFTC’s recent announcement that it would allow exemptions from certain European derivatives trading platforms, based on the European commission’s recognition of similar rules. The fia and SIFMA strongly support this exemption decision, but think that more work should be done to consolidate the CFTC’s work and to fully address market segmentation globally.

As the CFTC President Giancarlo said in a recent congressional testimony, the CFTC to implement dodd – frank swap deal terms, prompting market participants entities to deal with the United States no longer, leads to the formation of a global market differentiation “, a series of unique liquidity pools are more vulnerable to the impact of the market “.

The FIA and SIFMA agreed with Giancarlo’s assessment and proposed the white paper to address the market segmentation problem in a more comprehensive manner. In their paper, the FIA and SIFMA proposed changes to the way, is the clear and predictable, consistent with the dodd – frank, and built at the CFTC’s tried and true method to adjust the United States to enter the futures market.

Under this approach, the site swaps in America or China Commodity Exchange will not need to register in the commodity futures trading commission, or registered exemption, unless: a) allow americans (except for overseas branches) directly involved in the, bank of America), or b) requests directly involved in the United States. In addition, by the dodd – frank legal forced trading and settlement for U.S. companies cannot use trading venues outside America, or the communist party of China to meet these requirements, unless the place or the Chinese communist party in the United States commodity futures trading commission registered or remitted.

The fia and SIFMA argue that it is time for the CFTC to adopt a comprehensive framework to regulate cross-border transactions and liquidate swaps. The requirements of dodd-frank have been in force for several years, and the commodity futures trading commission is ready to review these requirements and consider their practical consequences.

“Dodd-frank has been the country’s law for more than seven years,” said Kenneth e. Bentsen, President and chief executive of SIFMA. It is time to stop from one deadline to another, but to develop a coherent and comprehensive solution to the time-tested cross-border trade challenge. ”

FIA – SIFMA revision method is proposed in the white paper is designed to meet the Dodd – Frank (Dodd – Frank) to reduce systemic risk and to protect the American public policy objectives, but also expand the customer into the U.S. market opportunities, investment demand. It would also more effectively use the CFTC’s regulatory resources and avoid foreign regulation of the us market.

“As President giancarlo, said earlier this year when he was announced his project KISS the initiative, the time is right the CFTC rule book to conduct a comprehensive review, to ensure that it is to promote economic growth, encourage responsible innovation, said:” the fia, chairman and chief executive of walter Lukken. “We hope that President zhan ankaro will consider our white paper on cross-border regulation as a contribution to this important initiative.”


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