U.K. Among Nations Raising Alarm on U.S. Swap Rules’ Reach

Nine overseas finance officials urge U.S. Treasury Secretary Lew to limit the cross-border reach of derivatives regulations.

Nine overseas finance officials urged U.S. Treasury Secretary Jacob J. Lew to limit the cross-border reach of Dodd-Frank Act swaps rules that they say are fragmenting the $639 trillion global market.

Seven finance ministers joined Michel Barnier, the European Union financial services chief, and George Osborne, U.K. chancellor of the exchequer, to tell U.S. officials to allow for broader recognition of overseas swaps rules. Their letter to Lew follows complaints by JPMorgan Chase & Co., Goldman Sachs Group Inc. and overseas officials about the planned reach of U.S. Commodity Futures Trading Commission rules.

‘Not Sustainable’

“An approach in which jurisdictions require that their own domestic regulatory rules be applied to their firms’ derivatives transactions taking place in broadly equivalent regulatory regimes abroad is not sustainable,” the officials wrote.

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