CFTC speaks on regulatory equivalence: Timothy Massad, Chairman of CFTC, spoke at the Futures Industry Association (FIA) International Derivatives Conference, focusing on the importance of regulatory equivalence for clearing houses, especially between the US and the EU. In his speech he covered:

  • the ongoing negotiation between US and EU regulators to draw up an equivalence agreement for US and EU clearing houses;
  • the steps CFTC has already taken in implementing swaps trading rules and reaching agreements with regulators in other jurisdictions to allow US regulated parties to trade abroad under US rules;
  • the work that CFTC and other international bodies, such as ECB and FSB, have done in the areas of data and reporting to ensure greater transparency in the swaps market; and
  • the ongoing work of CFTC in seeking internationally consistent margin requirements for uncleared swaps. 

He discussed the approach he would wish to take to requiring non-US entities to comply with US standards, but stressed the US and EU are still working towards a solution. 

(Source: CFTC Speech on International Regulatory Equivalence in the Swaps Market)