“Part of London’s lucrative over-the-counter swaps market is set to come under direct US regulatory oversight as dealers in the UK capital wrestle with meeting tighter rules for overseas swaps dealers accessing US markets.

“ICAP, the world’s largest interdealer broker, will next month begin trading US dollar-denominated swaps from its London home on a new US-regulated electronic marketplace.

“Its favoured approach eschews an alternative that would have meant its US dollar-denominated trades being overseen by the UK’s Financial Conduct Authority.

“The move may last for several years until new European rules, in line with US standards, come into effect.

“The decision is set to give US regulators, in the form of the Commodity Futures Trading Commission, more responsibility in part-monitoring one of London’s largest financial services.”

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Read full Financial Times article here.