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30 Apr 2013

The Securities and Exchange Commission with extraterritorial powers?

As broadly known the regulatory powers within US financial market are carried on by the Federal Reserve, the Securities and Exchange Commission and the Commodity Futures Trading Commission. Hence, the regulation implementing the Dodd-Frank Act should be issued by the SEC and the CFTC, in attention to the subject matter. The challenges prompted by financial derivatives regulation are showing, however, a slight turn of those attributions in practice. Tomorrow, the SEC will discuss rules for OTC derivatives to be applicable to cross-border transactions. The CFTC has already manifested disagreement as well as some European regulators. One could ask: are we attending a case of extraterritorial regulation issued by national regulator?

More information can be found
http://www.reuters.com/article/2013/04/26/sec-swaps-crossborder-idUSL2N0DD2WF20130426

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