Yesterday a coalition of trade associations - including the FIA - wrote to the CFTC regarding the CFTC's guidance on how it intends to apply the Dodd-Frank derivatives rules to cross-border transactions.
The letter asks the CFTC for a six-month extension of an exemptive order issued in December that postponed the application of the CFTC's swap rules to cross-border transactions. That order is set to expire on July 12 and a number of international regulators have expressed concern that the CFTC's proposed approach will conflict with similar efforts to regulate swaps in other parts of the world.
In the letter, the trade associations said a six-month extension would provide more time for international regulators to coordinate their efforts and for market participants to consider the implications of the SEC's recent cross-border proposals, which differ from the CFTC's approach in several important respects.
In a statement issued on June 6, CFTC Commissioner Scott O'Malia called for a vote on extending the exemptive order until Dec. 31. O'Malia said such an extension of time would allow the CFTC to develop a more workable final guidance, coordinate with the SEC, and work with international regulators to harmonize the global regulatory framework.