FIA Unveils White Paper Recommending Changes to US Derivatives Framework

The Futures Industries Association (FIA) has unveiled a new white paper encompassing a number of different recommendations detailing several improvements for the US regulatory framework that oversees derivatives markets. This includes an emphasis on clearing requirements and the aggregate impact of rules for risk management.

The latest white paper follows on the heels of similar efforts from the FIA, which advocated for policy reform and a review of US financial regulation earlier this year – a letter was sent by the FIA to touch on several principles.

As such, the latest FIA policy recommendations were developed with input and feedback across the derivatives industry, including a diverse panel of market participants. The paper can be read in full by accessing the . The recommendations fall into seven broad categories:

  • Eliminate the leverage ratio’s punitive impact on clearing
  • Modernize the regulatory toolbox
  • Improve end-user access to risk transfer markets
  • Simplify reporting rules
  • Avoid fragmentation of markets
  • Make regulation efficient, effective, and appropriately tailored
  • Avoid regulation by enforcement
Walt Lukken

According to Walt Lukken, President and CEO of FIA, in a statement on the paper: “One of the core functions of derivatives markets is to provide safe and efficient tools for businesses to manage price risk. FIA fully supports the goals of the G20 nations post-crisis to make the derivatives markets safer.”

“However, the cumulative impact of these rules is making it more difficult for market participants to access the markets and tools they need to manage risk. Our recommendations for a smarter and simpler regulatory framework promote growth and access while ensuring the safety and stability of our markets.”

“These recommendations are critical to the continued health and growth of our markets. We look forward to engaging with policymakers on how to reform the regulatory structure so as to revitalize our markets for end-users,” he added.

Be First to Comment

Leave a Reply

Your email address will not be published. Required fields are marked *