U.S. regulators will inject risk into the derivatives market ifthey don't take more time to coordinate Dodd-Frank Act rules withtheir overseas counterparts, six Democratic senators said.

The Commodity Futures Trading Commission (CFTC), facing a July12 deadline to determine the overseas reach of its rules, shouldtake additional time to coordinate oversight with other regulators,the senators said in a letter yesterday to Treasury Secretary JacobJ. Lew.

“Creating an overly complicated compliance system for marketparticipants will result in conflicting, duplicative orinconsistent rules that could foster new and unforeseen risks andlead to international regulatory arbitrage,” the senators said.“More time is needed for domestic harmonization and sequencing withregulations that occur abroad.”