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U.S., Europe Hit Impasse Over Rules on Derivatives 

September 26, 2014
Andrew Ackerman, Katy Burne and Viktoria Dendrinou, Wall Street Journal

U.S. and European policy makers have hit a snag in their postcrisis efforts to coordinate on international rules for derivatives, which played a central role in the 2008 meltdown.

The two sides are at loggerheads over the regulation of clearinghouses—entities that are supposed to help prevent a market-wide collapse by ensuring either party in a derivatives transaction would get paid if the other side falters.

The entities, which include CME Group Inc., Intercontinental Exchange Inc. and LCH.Clearnet Group, are required to register with their home-country regulators in the U.S. and Europe. Global regulators are working to establish a system to ensure that home-country rules are "largely equivalent" across borders.

But European policy makers are so far resisting blessing U.S. clearing regulations as "equivalent," as they've done with rules in Japan, Hong Kong, India and other countries with much smaller clearinghouses.

Read more: Wall Street Journal

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