European Traders Seek Delay in Overseas Trading Restrictions

4598412264_6cee64a500

The Commodity Futures Trading Commission may be delaying overseas trading restrictions that are set to go into effect next week.

European Traders are claiming that they need more time to comply, ensuring that overseas trading will be able to continue.

In an attempt to ease tension with European regulators, the CFTC will hold off on instituting several rules it has created in regards to overseas trading, allowing Europe to catch up on its own rule making process.

The CFTC and the European Union had been butting heads over derivative regulation for some time. While the CFTC has been moving very quickly and aggressively on derivative trading reform, the EU has taken a much slower approach, causing problems for overseas traders.

Last month however, the two regulators came to an agreement in which the CFTC would allow US traders to trade on European platforms, so long as the platform follows rules that are comparable with US platforms.

However, some trading firms based in London are now saying that they need more time to comply than the March 24th  deadline will allow. Currently, no European firm has filed paperwork saying that they are currently being regulated in a similar fashion to US platforms.

The CFTC says it will only consider a delay after receiving a formal request from European Officials or trading platforms, which, so far, has not happened.

While there is no guarantee that there will be a delay in overseas trading restrictions, European trading firms are hoping to have the deadline moved to July 1st.