Warnings About Splits in Global Derivatives Rules

Heads of largest U.S. derivatives exchanges voice concerns about inconsistencies between regulatory regimes and proposed fees on the industry.

Top executives of the two largest U.S. derivatives exchanges say regulators must take further steps to align Dodd-Frank Act rules with those of foreign counterparts to avoid oversight splits that could harm markets.

The Commodity Futures Trading Commission and overseas agencies have a few months to improve coordination before differences hurt business, IntercontinentalExchange Inc. Chairman and Chief Executive Officer Jeffrey Sprecher said at a House Agriculture Committee hearing where he testified alongside CME Group Inc. Executive Chairman Terry Duffy.

Contentious Rulemaking

The international reach of the CFTC’s swap rules has been one of the most contentious parts of the agency’s Dodd-Frank work, drawing opposition from banks including JPMorgan Chase & Co., Goldman Sachs Group Inc., and Barclays Plc. European and Asian regulators criticized the U.S. agency for the reach of rules requiring trades to be guaranteed at clearinghouses and traded on exchanges or other platforms.

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