U.S. Perspective on Cross-border OTC Derivatives Regulation

Published in: 

In their first trip to Brussels since the adoption of new cross-border derivatives rules (June 25, 2014), U.S. Securities and Exchange Commission (SEC) officials explained the new rules and spoke about on-going international efforts to address regulatory gaps, overlaps and conflicts.

Brian Bussey explained the key elements, namely the registration requirements for security-based swap dealer and major security-based swap participants, these being supported by cross-cutting rules, such as the “U.S. person” definition, and a procedural rule regarding the “substituted compliance”, a U.S term of what the EU calls “equivalence”.

Eric Pan indicated that the written indemnification agreement provision in the Dodd Frank Act (recourse to data in EU terms) poses a challenge for non-US regulators to have access to data from US-based trade repositories (TRs). On the European side, EMIR has the requirement there should be an international agreement to get access to data from EU-based TRs.