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Feb 07, 2013

OTC Derivatives Regulation and Extraterritoriality III

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Comprehensive EU and US measures to regulate over the counter (“OTC”) derivatives are progressing closer to full implementation. EMIR entered into force in the EU on 16 August 2012, with the clearing obligation expected to take effect in 2013. In the US, the Dodd-Frank Act requirements are being implemented, with dealer registration commencing as of year-end 2012 and mandatory clearing to begin in March 2013. Both measures by their terms have some degree of extraterritorial application. The CFTC has proposed guidance on the Dodd-Frank Act’s extraterritorial scope and granted temporary exemptive relief from the application of some requirements to non-US persons. In the absence of agreement between the US and EU regulators, however, extraterritoriality has the potential to cause intractable and irreconcilable conflicts for the derivatives industry. This note sets out certain situations in which extraterritoriality is likely to result in such conflicts.

View full memo, "OTC Derivatives Regulation and Extraterritoriality III"

Authors and Contributors

Barnabas Reynolds

Partner

Financial Institutions Advisory & Financial Regulatory

+44 20 7655 5528

+44 20 7655 5528

London

Azam Aziz

Partner

Derivatives & Structured Products

+1 212 848 8154

+1 212 848 8154

New York

Patrick Clancy

Partner

Finance

+44 20 7655 5878

+44 20 7655 5878

London

Thomas Donegan

Partner

Financial Institutions Advisory & Financial Regulatory

+44 20 7655 5566

+44 20 7655 5566

London

James Duncan

Partner

Finance

+44 20 7655 5757

+44 20 7655 5757

London

Geoffrey Goldman

Partner

Derivatives & Structured Products

+1 212 848 4867

+1 212 848 4867

New York

Donna Parisi

Partner

Derivatives & Structured Products

+1 212 848 7367

+1 212 848 7367

New York

Bradley K. Sabel

Of Counsel

Financial Institutions Advisory & Financial Regulatory

+1 212 848 8410

+1 212 848 8410

New York

Charles Gittleman

Of Counsel

Financial Institutions Advisory & Financial Regulatory

+1 212 848 7317

+1 212 848 7317

New York

John Adams

Partner

Investment Funds

+44 20 7655 5740

+44 20 7655 5740

London

Ellerina Teo

Associate

Financial Institutions Advisory & Financial Regulatory

+44 20 7655 5070

+44 20 7655 5070

London