The European Commission (EC) has published a joint statement concerning the latest US/EU financial markets regulatory dialogue (FMRD) which took place on 12 January 2015. Officials who attended the meeting included representatives of the EC, the European Supervisory Authorities, the US Treasury, the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC).

The joint statement outlines the discussions that took place on a number of key regulatory topics including:

  • derivatives reform. Participants reiterated the need for all G-20 jurisdictions to continue to address and implement the over-the-counter derivatives reforms in a timely manner. Both sides welcomed the extension of the transitional period for capital requirements for exposures to central counterparties (CCPs). The extension allows the EU to continue to engage with CFTC and SEC staffs to move forward on equivalence decisions for US CCPs. EC and CFTC staffs committed to resolving soon issues related to equivalence for US based CCPs under EMIR on the basis of an effective system of substituted compliance for dually registered CCPs. EU and US participants also discussed the importance of minimising divergences with regard to margin for uncleared swaps, to the extent possible;
  • banking. Participants committed to continue cooperation on regulatory standards for internationally active banks, and exchanged views about the implications of the recent report in the framework of the Basel Committee on Banking Supervision’s Regulatory Consistency Assessment Programme;
  • resolution. The US banking agencies, the US Treasury, and the EU welcomed the Financial Stability Board’s (FSB) proposal, in its public consultation, for an international minimum standard on total loss absorbing capacity and urged that it be finalised in time for the G-20 Leaders Summit later in 2015. The deadline for responses to the FSB’s consultation paper is 2 February 2015. EU participants also noted the extension of the conformance period under Volcker rule for legacy covered funds to July 2016. EU participants raised concerns about the effect of the Volcker rule on foreign funds; and
  • benchmarks. Participants reiterated support for the IOSCO principles for administrators of interest rate, foreign exchange and other financial benchmarks and reiterated their commitment to fight market abuse, including benchmark manipulation, through appropriate means.

The next FMRD meeting will take place in Brussels in July 2015.

View United States – European Union financial markets regulatory dialogue joint statement, 15 January 2015