There has been published a joint statement following the latest EU – US financial markets regulatory dialogue which took place on 8 July 2014.

The joint statement notes that productive discussions took place between EU and US officials on their respective regulatory reforms, including those reforms implementing the key commitments by the G20 leaders such as the implementation of Basel III capital, leverage, and liquidity rules; the implementation of over-the-counter derivative reforms and the orderly resolution of global banks.

Key points in the joint statement include:

  • EC staff and staff from the Commodity Futures Trading Commission (CFTC) intend to continue to discuss the technical aspects of any rule proposals, including possible CFTC rule proposals on the regulatory treatment of foreign swap execution facilities and central counterparties;
  • EC and CFTC staff affirmed the importance of continued technical discussions during the European Supervisory Authorities’ consultation period on risk mitigation techniques for non-centrally cleared derivatives, which are expected to conclude later this year;
  • there was agreement to continue cooperation on the regulation of algorithmic trading in order to ensure market integrity and promote market stability;
  • participants agreed that the Financial Stability Board should issue proposals for a strong international standard on gone-concern loss-absorbing capacity that is applicable to global systemically important banks for the G20 leaders’ summit later this year; and
  • participants reiterated their support for the agreed July 2013 final report on IOSCO principles for administrators of interest rate, foreign exchange and other financial benchmarks.

View EU – US financial markets regulatory dialogue joint statement, 14 July 2014