Statement by Commissioner Barnier on Global Derivatives Regulation


European Commission


Brussels, 27 juin 2014

Statement by Commissioner Barnier on Global Derivatives Regulation

Global derivatives markets need worldwide standards and national rules that work together seamlessly.

The G20 and international standard setters have made remarkable progress over the past five years in adopting international principles. These must now be fully implemented by regulators. 

A final push is now required by regulators, under the auspices of the G20/FSB, to agree how ‘deference’ to each other’s rules will work in practice.

I intend to propose shortly that the European Commission adopt ‘equivalence’ decisions that will allow CCPs from five countries outside the EU – Japan, Singapore, Australia, Hong Kong and India – to clear EU derivatives trades.

This will be done in full deference to the rules and supervisory systems of those countries.

This is the right way and the only way to regulate this global market. Decisions for other countries should follow shortly afterwards.

I am confident that this will also include the USA whose CCPs are truly global market infrastructures.

Our technical talks with the CFTC are progressing well and I am confident that we can agree on outcomes-based assessments of our rules and on aligning key aspects of margin requirements to avoid arbitrage opportunities.

If the CFTC also gives effective equivalence to third country CCPs, deferring to strong and rigorous rules in jurisdictions such as the EU, we will be able to adopt equivalence decisions very soon. 

I look forward to continuing my discussions with US partners as a priority matter.