European Union banks are a step closer to avoiding billions ofdollars of capital charges on their trades in derivatives and othersecurities after the U.S. Securities and Exchange Commission(SEC) adopted final rules for clearing firms.

SEC commissioners voted Wednesday to adopt standards that willapply to firms including the Options Clearing Corp. (OCC) andDepository Trust and Clearing Corp. (DTCC). Once the stiffermeasures are in place, the SEC and the European Commission, theEU's executive arm, could accelerate talks on the equivalence oftheir regulations.

EU law requires sharp increases in capital requirements onbanks' trades settled at clearinghouses based in countries whoseoversight and rules haven't been deemed as robust as those in thebloc. Barring an equivalence decision or a delay, the tougherrequirements would kick in on Dec. 15.