Market participants are welcoming the Securities and Exchange Commission's approach to cross-border rules governing security-based swaps trades. The SEC has taken a different approach to cross-border rules than the Commodity Futures Trading Commission, which has faced criticism for its cross-border regulations. Lawyers say the SEC appears to be cooperating more with foreign regulators. "The SEC approach recognizes that it is going to have to regulate the swaps markets by obtaining cooperation with non-U.S. regulators," said Steven Lofchie of Cadwalader, Wickersham & Taft in New York. "This is fundamentally different from the CFTC approach."

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