Reg fragmentation provokes exit from US

Author: Karry Lai | Published: 18 Apr 2019

Divergent approaches to derivatives reform since the 2008 financial crisis have created headaches for the industry and are prompting some to exit from certain markets over a lack of clarity, according to panellists at the International Swaps and Derivatives Association’s (Isda) AGM in Hong Kong last week.

While significant progress has been made on rules for clearing, reporting, capital and margin for non-cleared derivatives and trade execution to meet the post-crisis G20 reforms, major fragmentation remains. Now is the time to fine-tune and create harmonisation across jurisdictions.

"Market fragmentation is a dangerous road. Now is the time to assess," said Rostin Benham, commissioner of the US Commodity Futures Trading Commission (CFTC)....