A senior EC official has suggested that rules requiring indemnity agreements for swap data repositories before they share information with foreign regulators might not need to be enforced practically if Europe and the US both have similar provisions.
“If you have similar rules on both sides of the Atlantic, is it possible that because you have common and consistent rules that you can actually agree on, that they don’t need to be applied in practice?” said Patrick Pearson, head of Financial Markets Infrastructure in the EC’s Internal Market Directorate General, speaking at a Fordham Law School event in London on June 10.
Pearson added: “That is a third option that cannot be discounted.”
One market participant said it was the first time they’d heard this suggested approach. They said it might solve the US-EU issue, although it wouldn’t apply to other foreign regulators.
“Asian regulators will...