Group of 20 finance chiefs will say that they will act by the end of this year to resolve a transatlantic clash over rules for over-the-counter derivatives, according to a draft of their statement to be released later today.
The G-20 “agreed to put in place the legislation and regulation for OTC derivative reforms promptly and act by end 2012 to identify and address conflicts,” according to a draft of the statement that was provided by an official from a G-20 country who declined to be identified because the text isn’t final.
The U.S. Commodity Futures Trading Commission is under pressure from regulators in the European Union and Japan to overhaul its planned national rules for OTC derivative trading on concerns that the measures may leave companies outside the U.S. facing overlapping requirements and unnecessary costs if they seek to trade with U.S.-based businesses.
“At a time of highly fragile economic growth, we believe that it is critical to avoid taking steps that risk a withdrawal from global financial markets,” U.K. Chancellor of the Exchequer George Osborne, French Finance Minister Pierre Moscovici, Ikko Nakatsuka, Japan’s financial services minister, and Michel Barnier, the EU’s financial services chief, said in a joint letter to CFTC Chairman Gary Gensler dated Oct. 17.
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