The Commodity Futures Trading Commission (CFTC) and the U.S. Prudential Regulators1 have ordered U.S. swap dealers to proceed forward this week in implementing globally agreed margin requirements for uncleared swaps transactions. This direction comes despite last week’s announcement by regulators in Australia, Hong Kong and Singapore to delay this implementation date2 and a similar announcement several months ago by the European Commission of their own delay. These jumbled decisions confirm the failure of U.S. and overseas regulators to coordinate the implementation of new margin requirements. Worse, they leave U.S. regulators going it mostly alone3 to the detriment of American financial firms, their employees and the American businesses they serve.
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