U.S. Commodity Futures Trading Commissioner, Jill Sommers, said: "We have to be very clear on when you are captured and when you are not captured by the law". Sommers said the CFTC is in regular contact with European and Asian regulators as they work towards writing the rules mandated by the Dodd-Frank financial overhaul law. The European Union is pressing ahead with new structures for derivatives trading, following market overhauls in the U.S. and Japan.
"We need to reach at a certain point, a kind of recognition that entities which are subject to similar or equivalent requirements shouldn't be subject to double authorisation," said Maria Velentza, the head of the securities market unit at the European Commission.
Sommers said she's also concerned about discrepancies between rules written by different U.S. regulators, including rules on swap execution facilities, or SEFs. "This would be a place for an enormous amount of regulatory arbitrage, especially if within the US we have different requirements and standards for SEFs," Sommers said. She hopes the CFTC adopts rules more similar to the Securities and Exchange Commission on swap execution facilities.
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