European regulators have asked the Commodity Futures Trading Commission to extend a temporary exemption, set to expire July 12, from U.S. swaps rules for foreign banks. The delay would permit international discussion of the rules, European officials say. They warn in a letter to the CFTC that failure to extend the exemptive order would create "possible legal uncertainty and unintended consequences." European and Asian regulators also have criticized the CFTC for extraterritoriality in a rule requiring trades to be processed on exchanges and guaranteed at clearinghouses. "A globally harmonized approach to cross-border regulation is of paramount importance," ISDA Chairman Stephen O'Connor said.
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