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Showing Original Post only (View all)US regulators look to ease swaps rules [View all]
Source: Financial Times
US regulators are exploring ways to give large foreign banks and overseas subsidiaries of US lenders a reprieve from stringent new derivatives rules, potentially alleviating one of the biggest concerns facing global financial institutions.
The US Commodity Futures Trading Commission is looking to grant a temporary exemption to swap dealers that may fall under the jurisdiction of foreign financial authorities from complying with a host of post-financial crisis regulations governing derivatives transactions, people familiar with the matter said.
New regulations such as higher capital requirements, the mandated posting of margin, central clearing and tighter business conduct standards are among the directives slated to take effect aimed at reducing systemic risk. Wall Street analysts have warned investors that these rules are expected to take a significant bite out of bank earnings power.
Last week, Michel Barnier, the EUs financial services commissioner, sent a stern letter to US financial supervisors strongly encouraging them to delay applying new swaps rules to European banks until there is legal clarity about what the regulations would entail.
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