CFTC Chair J. Christopher Giancarlo identified elements of successful regulatory and supervisory cooperation between the United States and Europe: overcoming history, building trust, commitment to shared principles, and addressing challenges.
In remarks at the Eurofi Financial Forum in Bucharest, Mr. Giancarlo acknowledged that the CFTC's 2013 cross-border guidance "alienated many overseas regulatory counterparts" and said that when he became CFTC Chair, he took steps to acknowledge the issues prompted by the CFTC's "expansive approach to applying its swaps rules to cross-border activities" and to present his own ideas for change.
Mr. Giancarlo underscored the importance for Europe and the United States to take steps to "rebuild trust," citing his efforts to be transparent about his own views for swaps regulation and the CFTC's efforts to be an active participant in international standards-setting activities. Additionally, Mr. Giancarlo stated that a "commitment to shared principles" (i.e., market-based solutions, open markets and competition and outcomes-based deference) is critical to successful regulatory and supervisory cooperation between Europe and the United States.
Finally, Mr. Giancarlo said that Europe and the United States must be aware of the challenges that have previously eroded regulatory and supervisory cooperation. In particular, he noted the challenge of insulating market regulation from domestic politics and ensuring forthrightness between regulators, and declared that the two jurisdictions "must continue to show the world that we can work together."
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