The European Union’s financial-services
chief said he’ll push for a deal with the U.S. on rules for
swaps clearinghouses by a June 2015 deadline.
Jonathan Hill said in an interview in Brussels that he sees “encouraging” signs that the impasse, which has implications for EU-based banks’ capital requirements, can be brought to an end.
“It needs to be resolved,” he said. “It would be good for the U.S. and for us if it is resolved, and I think we’ve got a good opportunity to get it done satisfactorily.” Hill said he plans to travel to the U.S. early next year.
The European Commission, the EU’s executive arm, and the U.S. Commodity Futures Trading Commission have repeatedly clashed over the scope of their rules for the $691 trillion market for swaps and other over-the-counter derivatives, as regulators seek to plug loopholes exposed by the 2008 financial crisis.
In the EU, the commission decides if another country’s rules are as tough as the 28-nation bloc’s own standards. These so-called equivalence decisions have implications for market access and other requirements. Firms based in nations that are judged equivalent can in some cases access the European market without having to comply expressly with EU regulations, because their domestic rules are deemed as strong.
Read more: EU Seeks U.S Swaps Rule Deal Before Bank Capital Deadline - Bloomberg
Jonathan Hill said in an interview in Brussels that he sees “encouraging” signs that the impasse, which has implications for EU-based banks’ capital requirements, can be brought to an end.
“It needs to be resolved,” he said. “It would be good for the U.S. and for us if it is resolved, and I think we’ve got a good opportunity to get it done satisfactorily.” Hill said he plans to travel to the U.S. early next year.
The European Commission, the EU’s executive arm, and the U.S. Commodity Futures Trading Commission have repeatedly clashed over the scope of their rules for the $691 trillion market for swaps and other over-the-counter derivatives, as regulators seek to plug loopholes exposed by the 2008 financial crisis.
In the EU, the commission decides if another country’s rules are as tough as the 28-nation bloc’s own standards. These so-called equivalence decisions have implications for market access and other requirements. Firms based in nations that are judged equivalent can in some cases access the European market without having to comply expressly with EU regulations, because their domestic rules are deemed as strong.
Read more: EU Seeks U.S Swaps Rule Deal Before Bank Capital Deadline - Bloomberg
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