U.S. regulator would welcome delay of EU clearing rules
A top U.S. regulator said on Wednesday he would welcome a delay by the European Union that gave more time to resolve a conflict with Washington over making derivatives markets safer.
Reuters reported last week that the EU is discussing whether to move a deadline by which U.S. clearing houses, which act as go-betweens for buyers and sellers, must meet EU rules when doing business there.
“I am encouraged by that flexibility … it’s very important as we deal with this not to disrupt the market,” Tim Massad, the head of the Commodity Futures Trading Commission derivatives regulator, told Reuters in an interview.
At the moment, Europe is sticking to its own rules for U.S. clearing houses rather than exempting them as it plans to do with Japan, Hong Kong and Australia, for example.
The current deadline is December 15, after which new capital requirements kick in, making it prohibitively expensive for European banks to do business with U.S. clearing houses.
European regulators and the CFTC are cracking down on the market as part of a global agreement that followed the crisis, but have bickered over the supervision of foreign entities.
Source: Reuters
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