Martin Wheatley spoke to ISDA on current issues in the derivatives markets. He spoke about:

  • cross-border regulation and whether it is practical for one regulator to attempt to regulate all derivatives activities with any link to its jurisdiction, and, if a regulator acts in this way, how to deal with the inevitable conflict when another regulator acts similarly. He focused on the EU/US "roadmap" and plans for mutual recognition. He said a way forward for trading venues needs urgent solution;
  • collateralisation of derivatives. He said he thought the principles published by the working group on margin requirements represented a good balance and should form part of domestic law;
  • implementation of the European Market Infrastructure Regulation (EMIR). He said FCA is pleased with EMIR's progress and the progress of large firms to meet its deadlines. He said FCA will work to help small firms but stressed the need to prepare as much as possible for implementation of key parts of EMIR; and
  • benchmarking. He discussed the tensions between different benchmarks and the challenges of putting principles into practice.

(Source: FCA Speaks on Derivatives)