September 24, 2018
The markets are already getting excited about the CFTC's plan to help U.S. clients clear foreign swaps on overseas central counterparties (CCPs), but experts warn the champaign may have to stay on ice for a while yet. Nihal Patel comments.
An excerpt from “CFTC's Cross-border Clearing Plan Faces Long Haul,” Risk.net, September 24, 2018:
"I would caution that, notwithstanding Chairman Giancarlo's push to get this done, this process will take some time, and the details will be really important in order to gain consensus among market participants and non-U.S. regulators," says Nihal Patel, a swaps regulation lawyer at Cadwalader in New York.
Patel expects it will be at least a year before the U.S. Commodity Futures Trading Commission finalises a rule.