U.S. Must Respect Overseas Swaps Rules: CFTC’s Wetjen

Commissioner argues that the CFTC should defer to ‘comparable’ international regulations.

The U.S. Commodity Futures Trading Commission, facing concerns from European and Asian regulators about the scope of new swaps rules, should rely on overseas authorities when possible, Commissioner Mark P. Wetjen said.

“In light of the commission’s limited resources, efficient regulation through deference to comparable regulation just makes sense,” Wetjen, one of three Democrats on the five-member CFTC, said today in remarks prepared for delivery at an International Swaps and Derivatives Association Inc. conference in New York.

Insufficient Clarity

The CFTC’s June proposal failed to sufficiently clarify the reach of the rules and could lead to conflicts, according to letters submitted to the agency by overseas regulators. The letters were sent by the U.K.’s Financial Services Authority, European Commission, European Securities and Markets Authority, Financial Services Agency in Japan, the Bank of Japan, Bank of France and Swiss Financial Market Supervisory Authority.

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