Evaluation By EU of U.S. Credit Swap Rules Delayed


The European Commission has given regulators at the European Securities and Markets Authority more time to analyze United States and Japanese credit swaps. The original deadline for their analysis was June 15th, but ESMA has been given an extension until September 1st to formulate an opinion on third party clearing houses regarding OTC derivatives regulation.

Until the robustness of US credit swap policy has been reviewed, some European banks have been given more restricted access to clearing houses outside of the European Union. Because of concerns that US banking policies may not be compliant with European policies, credit swap rules have become a contentious issue between US and EU regulatory bodies, according to Bloomberg.

Since Dodd-Frank was enacted and furthered the  US Commodity Futures Trading Commission’s international reach, it has caused some compliance issues abroad. The reason for the postponement, according to a letter posted to the European Securities and Markets Authority’s website from the European Commission, is “to allow ESMA more time to take account of international on-going developments and to consider their implications fully.”

Along with reviewing United States credit rules on September 1st, Japan will also be analyzed in this report. A full schedule of ESMA’s proposed assessments of national credit swap rules can be found on their website.

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About the Author

Felix Shipkevich
Mr. Shipkevich’s practice focuses on regulatory, transactional, and enforcement matters in the fields of futures, commodities, and derivatives. He works with Futures Commission Merchants (FCMs), Retail Forex Exchange Dealers (RFEDs), Introducing Brokers (IBs), Commodity Pool Operators (CPOs), Commodity Trading Advisors (CTAs), Swap Dealers (SDs), Swap Execution Facilities (SEFs), and domestic and offshore hedge funds. Mr. Shipkevich guides clients on procedures related to registration with the U.S. Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA), as well as domestic and international regulators in local jurisdictions. Mr. Shipkevich prepares and helps implement compliance, anti-money laundering (AML), and Electronic Trading Systems (ETS) procedures for clients in the commodities and derivatives fields.