IIAC president and CEO Ian Russell’s latest industry letter addresses current priorities of global regulators, including cross-border rules harmonization, corporate governance shortcomings, and the role of regulators in enhancing ethical standards.
“The extensive effort to regulate trading and clearing of securities in OTC derivatives markets has been held up as the archetypal case of poor coordination among domestic regulators,” says Russell. It’s resulted in “different and sometimes conflicting rules and requirements for similar trading and clearing transactions across jurisdictions, adding unnecessarily to compliance costs and market inefficiencies, and fragmenting what had been a closely-linked global market in OTC derivatives.”
He adds: “The problem is the result of insufficient effort among regulators to discuss proposed rules and reach consensus on structure and format, as well as the intention of some jurisdictions to pre-empt the rulemaking exercise and force acceptance of this early-formatted rule framework.”
Read more here.