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"We have an aspirational goal of September for reaching resolution on some of these issues", Brian Bussey, associate director for derivatives policy at the US Securities and Exchange Commission (SEC), said. The plan is for the $640 trillion derivatives sector, dominated by 16 big banks, to have all trades recorded and cleared by third party clearing houses that are backed by a default fund.
The United States and the European Union are trying to meet the G20 pledges with domestic rules, such as the US Dodd Frank Act. But there are differences emerging over how far each country can regulate "cross-border". The SEC and the main US derivatives regulator, the Commodity Futures Trading Commission (CFTC), Mexico and Canada have outlined how they will treat cross-border derivatives.
Europe has criticised the CFTC for the cross-border reach of its new derivatives rules. As a result, the SEC is trying to broker a compromise by proposing a more accommodative "middle way" welcomed by global regulators.