Lawmakers in both the U.S. and Europe are making efforts to ensure that their derivatives regulations are as similar as possible, although it is inevitable that discrepancies will exist between the two jurisdictions, European Securities and Markets Authority chairman Steven Maijoor told Reuters in an interview.
The media outlet reports that the majority of the world's derivatives transactions happen in the European Union and the U.S., and that the government officials there "are trying to align as much as possible to avoid regulatory competition, regulatory gaps," according to the media outlet.
One area where the two jurisdictions could easily encounter variations is Basel III. Lawmakers of the EU are still working on their final interpretations of the capital rules that were previously established by the Basel Committee on Banking Supervision.
U.S. government agencies had previously set a date of January 1, 2013, for their banks to start adopting the requirements, but these regulators announced that they were abolishing the timeline without setting up a new one.
Maijoor told Reuters that the ultimate objective that the officials of the two jurisdictions have is for the regions to be able to "rely on each other instead of doubling up," and that "this is still a difficult issue."
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