Excerpts from Chairman Tarbert’s Op-ed with the EU’s Valdis Dombrovskis in the Wall Street Journal

“As leaders of the commissions that regulate derivatives markets in the EU and U.S., we are both committed to establishing a harmonious relationship that achieves shared regulatory objectives while affording appropriate deference to home-country authorities.

“This commitment to international regulatory comity remains of vital importance in the financial world after the global financial crisis—and even more so in the post-Covid future. The ever-changing financial, economic and even political relationships in our world constantly reinvigorate intense debate about where regulatory jurisdictions begin and end: Will the EU regulate derivatives clearinghouses that are dually registered in the U.S.? Will the U.S. continue to do the same to EU clearinghouses that are supervised under similar rules at home?

“After refreshing the dialogue between our two sides more than a year ago, the EU and U.S. have now determined and are implementing a mutually beneficial set of steps that promise clear, predictable and sound regulation and supervision for derivatives central counterparties.

“The EU further clarified its deference regime for foreign clearinghouses in 2019. This week it adopted detailed laws to implement this framework, focusing its attention on particular market segments that pose systemic risk to its financial system.

“In recognition of the robustness of the rules that have been in place since 2015 and reflecting sound supervision, the CFTC has adopted a more deferential framework for compliance with U.S. regulations. This mutually deferential framework will give further clarity to central counterparties that are registered in the U.S. and authorized to serve EU-based institutions and their clients.

“These significant steps between our two jurisdictions are taking place in challenging times. They bear witness to our continued commitment to supervisory cooperation to ensure a robust and transparent global financial sector that protects our respective economies.”

Read the full op-ed here.