Global regulators' plans for a coordinated start next month toswap-collateral rules are breaking down, with countries takingdifferent approaches to the deadline and traders in the $544trillion industry scrambling to get ready.

The European Union plans to stick to the March 1 start date, andregulators have little power to quickly adjust laws after they goon the books, according to an EU official. In Hong Kong, Singaporeand Australia, authorities granted the industry six months to phasein the requirement, eager to avoid a messy start to a key policyintended to make the market safer following the 2008 financialcrisis.

In the U.S., the picture is even more complicated. The actingchairman of the Commodity Futures Trading Commission, who took overafter President Donald Trump was inaugurated, said the deadline isunrealistic and wants to find a way to smooththe implementation of a rule that seeks to bolster thefinancial system by forcing banks, asset managers and other tradersto hold more collateral to protect against risks stemming from adeal going bust.

Continue Reading for Free

Register and gain access to:

  • Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
  • Informative weekly newsletter featuring news, analysis, real-world cas studies, and other critical content
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.