Government officials identify problems in new OTC derivatives regulation

government+officials+from+a+wide+range+of+jurisdictions+have+identified+problems+in+the+derivatives+regulations+that+have+been+created+to+govern+the+m 3497 800919348 0 0 7051099 300 Government officials identify problems in new OTC derivatives regulation  Government officials from a wide range of jurisdictions have identified problems in the derivatives regulations that have been created to govern the market for OTC contracts, according to a statement released by the U.S. Securities and Exchange Commission on December 4.

This statement was released following a meeting of people representing these jurisdictions that happened on November 28 in New York. Officials from Brazil, the United States, the European Union, Australia, Japan and Singapore met to discuss the changing laws they agreed to adopt stemming from a meeting of G20 nations that happened in 2009.

The officials narrowed down a more specific list of adverse consequences that could stem from imposing the rules. The SEC's Office of International Affairs said in the statement that "we have identified various potential conflicts, inconsistencies, and duplicative requirements within our respective contemplated rules and we will continue to discuss measures to ameliorate the challenges they raise."

They also emphasized the importance of developing feasible solutions related to any adoptions of the rules that generate conflict and seeking out regulations that are either inconsistent or duplicate with the objectives of other rules. They also stressed eliminating "gaps" that would allow market participants to avoid coping with specific derivatives regulations in certain jurisdictions. 

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