Industry groups urge rethink on derivatives trading rules

Thinking manA group of eight industry bodies including the Investment Management Association (IMA) is calling for the European Commission and the US Treasury to rethink proposed rules on derivatives trading.

The industry groups are concerned that conflicting regulatory regimes in different countries will cause headaches for derivatives traders. The US and the EU are developing separate sets of rules and the groups fear that “ambiguity and problematic extra‐territorial challenges” will prevail if regulators are not compelled to work together.

The regulatory ambiguity could spill over into emerging markets and hinder investment, said the groups.

"Investment managers have consistently supported the G20 agenda for reform of the derivatives markets,” said Jane Lowe, director of markets at the IMA. “However, changes should make business sense. In global markets conflicting regulatory requirements are likely to introduce uncertainty, wasted time and cost for firms and their clients, without any clear regulatory benefit.”

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