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Peace is at Hand -- EC and CFTC Announce Cross Border Accord

News Developments    Between Bridges   
Published Date: July 11, 2013

On the virtual eve of the scheduled expiration of the Cross Border Exemptive Order of the Commodity Futures Trading Commission, the CFTC and the European Commission announced this morning an accord in principle on the regulation of cross-border derivatives. In general, the accord potentially permits a great deal of substituted compliance even with transaction-based rules with guaranteed affiliates of US swap dealers, and provides a model for accords among other members of the G-20.
The highlights of this accord are as follows:

In addition, the CFTC and EC commit to work together to coordinate approaches to straight-through processing and to harmonize rules on margins for uncleared swaps. The CFTC and EC will also work together to resolve remaining issues related  to trade repositories, such as consistent data fields, access to data and other issues related to privacy, blocking and secrecy laws.

As a result of this accord, the CFTC Open Meeting scheduled for July 12 is likely to include passage of Final Guidance encompassing this CFTC EC Accord, as well as a host of exemptive relief.

For more information, see:
http://www.cftc.gov/PressRoom/PressReleases/pr6640-13
 http://www.cftc.gov/ucm/groups/public/@newsroom/documents/file/jointdiscussionscftc_europeanu.pdf
http://europa.eu/rapid/press-release_MEMO-13-682_en.htm?locale=en--PR_metaPressRelease_bottom

The information contained in this article is not legal advice. For legal advice, please consult with your attorney. The information in this article is derived from sources believed to be reliable as of July 11, 2013, but no representation or warranty is made regarding the accuracy of any statement. To ensure compliance with requirements imposed by U.S. Treasury Regulations, Gary DeWaal and Associates LLC informs you that any U.S. tax advice contained in this communication (including any attachments) was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. Gary DeWaal and Associates may represent one or more entities mentioned in this article.


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