Consider it regulatory kismet. Independently, on Feb. 10, the Securities and Exchange Commission and Commodity Futures Trading Commission finalized long-lingering rules and agreements intended to resolve concerns with the international marketplace for derivatives deals.
The SEC’s new rules cover foreign swaps dealers who maintain trading desks in the U.S. and their cross-border transactions. First proposed in 2013 and modified over the years, it clarifies who should register as a security-based swap dealer under U.S. law, closing a perceived loophole that banks and others in the financial services industry could use to bypass domestic rules. Meanwhile, the CFTC took a giant step toward resolving a long-simmering impasse between it and European regulators. Both efforts are being hailed as “milestones” by both regulators and outside observers.
