US supervision of cross-border derivative trades is flawed and in need of an overhaul according to EU Chairman Christopher Giancarlo. He said the commission will soon publish a white paper on the cross-border swaps market seeking to spur dialogue among EU commissions about the recalibration of the supervisors based on a set of guiding principles. Giancarlo’s pledge follows EU criticism of overreach in draft CFTC laws that would give CFTC regulators a role in supervision US-based clearing houses that service CFTC-based customers, impinging on the EU’s turf.
US supervision of cross-border derivative trades is flawed and in need of an overhaul according to CFTC Chairman Christopher Giancarlo. He said the commission will soon publish a white paper on the cross-border swaps market seeking to spur dialogue among CFTC commissions about the recalibration of the supervisors based on a set of guiding principles. Giancarlo’s pledge follows CFTC criticism of overreach in draft EU laws that would give EU regulators a role in supervision US-based clearing houses that service EU-based customers, impinging on the CFTC’s turf.