CFTC chairman, Gary Gensler, is set to meet with European financial regulators on June 20th in Montreal, reports The Wall St. Journal. The meeting will be a hurdle for Gensler, who opposes an extension for the delay of U.S. derivative rules taking effect on July 12 on foreign banks and foreign branches of U.S banks.
Banks and regulators have called for an extension in order for other countries to set their own swaps rules. Some have said that these swaps rules make the U.S. marketplace less attractive. It would give foreign banks that do not have to comply with the guidance issued last year, which determined how foreign banks should follow U.S. swaps rules (which is not finalized), an advantage.
Gensler faces the challenge of members of his own CFTC questioning the deadline, with Republican Commissioner Scott O’Malia, EU regulators and others, suggesting an extension until December 31st.
Some have been against any delays. The Wall St. Journal reports that Marcus Stanley, policy director for the lobby group, Americans for Financial Reform has said, “If you try to delay it until everybody in the world is done with their derivatives rules, our kids might see it, but we won’t.”