Q&A ISDA Japan: Europeans May Land Advantage In Japan

The slower pace of regulatory change in Europe could benefit European dealers operating in Japan, as firms there diversify away from U.S. counterparties ahead of stiff Dodd-Frank regulations being implemented. Tomoko Morita, policy director and head of the Tokyo office for the International Swaps and Derivatives Association, said Japanese firms will be tempted to shift to European counterparties in order to sidestep registration as a major swap participant under U.S. regulation.“