Concerns surrounding extraterritoriality in forthcoming European and U.S. regulation in the derivatives market were the focus of conversation between market officials and Asian regulators at the International Swaps and Derivatives Association Asia Pacific Regulators Workshop in Hong Kong today. The event was planned by ISDA to discuss the developments of trade repositories and central counterparties in Asia.
“The undercurrent of this extraterritoriality issue comes up in any number of ways in how CCPs and trade repositories are regulated,” Robert Pickel, executive vice chairman of ISDA in New York, told Derivatives Week. “There is, in some way, shape or form, a variation of the extraterritoriality issue in both these areas.”
During the conversation about trade repositories, a main concern from regulators involved the indemnification clause in the Dodd-Frank Act, which requires foreign regulators to provide an indemnity for data to the Depository Trust and Clearing Corporation. “That one is troublesome and will quite likely lead to DTCC having trade repositories in multiple jurisdictions,” Keith Noyes, regional director of Asia Pacific for ISDA in Hong Kong told Derivatives Week. Asian regulators want assurance that they will be able to readily access information relevant to their jurisdictions from the DTCC.
The closed forum was a follow-up to a similar event held in May in Bangkok, and according to officials, saw a broader cross-section of jurisdictions and regulators.