U.S. Can’t Go It Alone on Derivatives

Over the past five years, the European Union and the U.S. have developed separate, new regulatory regimes for derivatives, aimed at protecting our financial systems, economies and taxpayers from a repeat of the 2008 crisis. The next challenge is to use those reforms as the foundation for a single, global framework.

European Markets and Infrastructure Regulation, the EU’s strict and comprehensive set of rules for derivatives transactions, became law in August and took effect in March. EMIR fulfills the commitments made by the leaders of Group of 20 nations to improve safety and transparency by requiring reporting and mandatory clearing for derivative trades. Trading rules will soon follow.