Risk Desk editor John Sodergreen interviewed CFTC Chair J. Christopher
Giancarlo on the regulation of cross-border swap transactions.
Mr. Giancarlo observed that Asian markets have "warmly
accepted" the principles laid out in his recently issued white
paper, specifically, the principle of regulatory deference whereby
regulators defer to comparable rules adopted by other countries. He
expressed concern that rules being considered by European
regulators "ignore certain principles of comparability and
rule deference." Mr. Giancarlo argued that if the United
States is freeing American firms operating in Europe to do so under
EU law, then Europe should do the same with respect to European
firms operating in the United States, and allow them to comply with
U.S. law. Mr. Giancarlo made clear that unless Europe follows
"a regulatory deference approach" to cross-border
transactions, he will not hesitate to employ the "tools"
available to U.S. regulators so that the Europeans
