Deciding on Deference or Comity
The ISDA Chief Executive Officer Scott O'Malia has offered some informal comments on important OTC derivatives issues in derivatiViews, reflecting ISDA's long-held commitment to making the market safer and more efficient.
"The new CFTC rules represent a step forward in how cross-border transactions will be regulated. By reining back the previous guidance, the CFTC has recognized it doesn’t have the capacity to police the entire swaps universe and instead should develop a more sustainable and collaborative approach to working with other jurisdictions that have comparable rules in place. We should now turn to securing comparability determinations to minimize the potential for duplication, inconsistency and regulatory retaliation, and ensure the derivatives market remains safe and efficient. For our part, ISDA will work with members to help implement the rules, identify areas where similarities exist between rule sets, and take advantage of new eligibility requirements to initiate comparability determinations where appropriate."