“Gary Gensler’s plan to impose U.S. derivatives rules on foreign-based banks will face a critical test when the Commodity Futures Trading Commission chairman meets with European regulators in Montreal on June 20.
The meeting comes as a majority of the five CFTC commissioners have begun signaling opposition to Mr. Gensler’s approach, according to government officials.
Top policy makers overseas and some of the world’s biggest banks have been pushing for an extension of a July 12 deadline when foreign-based banks, including the overseas branches of U.S. lenders, will have to start complying with new U.S. derivatives rules. Both the policy makers and the banks argue the U.S. should wait for other countries to finalize their own swaps rules and say they will face a competitive disadvantage against foreign banks that don’t have to comply.
Foreign banks that do no business with the U.S. won’t have to follow the U. S. rules, potentially making them more appealing business partners for other banks that aren’t covered.”
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