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Exclusive - U.S., Europe head toward delay in squabble over swaps rules - source 

September 8, 2014
Douwe Miedema, Reuters

The European Union is discussing delaying a deadline for a second time in its efforts to reform the global derivatives market, a source familiar with the matter said, as talks with U.S. regulators have failed to produce a breakthrough on a main sticking point.

The two sides are still at odds on allowing clearing houses, which stand between buyers and sellers of derivatives to reduce risk, to operate in each others' jurisdictions.

The impasse is adding uncertainty for U.S. clearing houses, which are concerned about losing business, while another delay would be a setback in reining in the $710 trillion (431.40 trillion pound) market that was core to the financial crisis.

"Last year, there was optimism that we would move fast on a system where there would be more reliance on each other. I think it's fair to say that that has not gone as quickly as we had hoped," Steven Maijoor, the head of the European Securities and Markets Authority (ESMA) said in an interview.

Read more: Reuters

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