ESMA's Maijoor warns about regulatory arbitrage in FX derivatives

02/12/2012 | FinancialCAD (Canada)

Steven Maijoor, chairman of the European Securities and Markets Authority, warned that different collateralization requirements for foreign exchange derivatives in Europe and the U.S. raise regulatory-arbitrage concerns. "The real issue for FX derivatives that only a few have spotted is not the clearing obligation, but bilateral [collateralization]," Maijoor said. "The problem of international inconsistency and regulatory arbitrage is much more serious for margin for contracts that are not centrally cleared."

View Full Article in:

FinancialCAD (Canada)

Published in Brief: