Brokers Say CFTC’s International Rules Harm U.S. Firms

Executives at brokers criticize the agency’s interpretation of new rules for its global counterparts.

The main U.S. swaps regulator risks harming American firms with the way it’s telling international counterparts to interpret rules to oversee the $648 trillion swaps market, according to executives at brokers from ICAP Plc to Tradition North America Inc.

The Commodity Futures Trading Commission is weighing final guidance on the cross-border reach of trading, capital, collateral and other swaps rules under the Dodd-Frank Act. The commission held a meeting in Washington last week with the U.S. Securities and Exchange Commission, which shares oversight of some swaps markets, where European regulators said the U.S. approach wouldn’t work.

‘Jingoistic Problems’

The idea of substituted compliance is bound to fail, Harding said.

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