ARTICLE
24 July 2019

CFTC And Japanese Counterpart Extend Cross-Border Regulatory Deference To Trading Derivative Platforms

CW
Cadwalader, Wickersham & Taft LLP

Contributor

Cadwalader, established in 1792, serves a diverse client base, including many of the world's leading financial institutions, funds and corporations. With offices in the United States and Europe, Cadwalader offers legal representation in antitrust, banking, corporate finance, corporate governance, executive compensation, financial restructuring, intellectual property, litigation, mergers and acquisitions, private equity, private wealth, real estate, regulation, securitization, structured finance, tax and white collar defense.
The CFTC and the Japan Financial Services Agency ("JFSA") agreed to exempt certain electronic derivative trading platforms ("ETPs") from having
United States Finance and Banking

The CFTC and the Japan Financial Services Agency ("JFSA") agreed to exempt certain electronic derivative trading platforms ("ETPs") from having to register in their non-home jurisdictions.

The CFTC Order exempts ETPs that are regulated by the JFSA from registering with CFTC as swap execution facilities. Concurrently, the JFSA will facilitate the authorization process of CFTC-authorized derivatives platforms that seek to operate in Japan.

The exemptions were issued in a manner consistent with each country's policy of extending cross-border regulatory deference to trading venues subject to comparable regulation. According to the CFTC, this "ensures that market participants can rely on comprehensive rules and regulations of one jurisdiction without fear that another jurisdiction will seek to selectively impose an additional layer of regulatory obligations on them."

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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