Six Democratic Senators wrote to Treasury Secretary Jacob Lew yesterday to “express concerns regarding the process of reforming the derivatives market, specifically the development of workable cross-border rules.” The letter explained that the SEC and CFTC have issued “different and somewhat conflicting” proposals on the subject.
“With clear direction and leadership, the CFTC and SEC can and should work with domestic and international regulators to ensure that the global derivatives market promotes transparency, efficiency and risk mitigation,” the Senators said. “To achieve this coordination, more time is needed for domestic harmonization and sequencing with regulations that occur abroad.”
The House has passed ABA-supported legislation (H.R. 1256) that would require the SEC and the CFTC to issue rules jointly on the application of the Dodd-Frank Act to cross-border securities transactions.
Read the full letter.