Non-centrally cleared bilateral swaps provide an important and legitimate way of facilitating international trade and the global regulatory framework needs to support this whilst putting in place appropriate risk safeguards. 

The JFMC has written to the U.S. regulatory agencies on their recent consultation proposals on this topic. The JFMC is supportive of having harmonization with the international framework proposed by BCBS/IOSCO and asks that the U.S. regulators, in a number of respects, consider aligning its rules with these standards as the U.S. rules can impact on international firms global operations that help facilitate trade. The JFMC also points out some logistical problems for market participants in Asia and asks for longer lead-in time and the phasing-in of requirements.

Click here for JFMC consultation responses.