SPEECHES & TESTIMONY

Statement of Chairman J. Christopher Giancarlo on Australia Comparability Determination: Margin Requirements for Uncleared Swaps for Swap Dealers and Major Swap Participants

March 27, 2019

Washington, DCToday I am pleased to announce that the Commission has issued a decision concluding that the Australian margin rules are comparable to the CFTC rules.  As a result, Australian firms may rely on compliance with Australian margin rules to satisfy CFTC requirements.

In making this substituted compliance determination, Commission staff has conducted a principles-based, holistic analysis that focuses on regulatory outcomes rather than on a strict rule-by-rule comparison.  This means that market participants can rely on one set of rules – in their totality – without fear that another jurisdiction will seek to selectively impose an additional layer of regulatory obligations.

This comparability determination is another example of how the Commission is committed to showing deference to foreign jurisdictions that have comparable regulatory and supervisory regimesSuch an approach is essential to ensuring strong and stable derivatives markets that support economic growth both within the United States and around the globe.