In this podcast we are talking about regulatory harmonisation across borders, or rather lack thereof. While regulators have been in agreement with the G20 recommendations, there have been some ructions at the national levels, most notably between the U.S. and Europe. Both jurisdictions have been wrangling for months over the details, especially the regulation over clearinghouses.
There is hope that the more conciliatory tone struck by CFTC Chairman Timothy Massad, will pave the way for more fruitful discussions, but of course no one expects to see a deal struck overnight.
We asked Stephen Loosley, partner at Catalyst Consulting, how he thinks things will unfold.
In this podcast we discuss:
- What are the reasons behind the lack of harmonisation between the US and Europe?
- What are the main points of disagreement between US, European and Asian regulators?
- What are the stumbling blocks for cross-border reconciliation of derivatives regulation?
- There is a view that the new CFTC head Timothy Massad, chairman of the US Commodity Futures Trading Commission, will be more willing to harmonise swaps rules with Europe and Japan. Do you think this will be the case?
- How do you foresee this being resolved?
- If not, what are some of the main consequences?
See Podcast Transcript below