US Treasury – The Dodd-Frank Act creates a comprehensive framework of regulation for the OTC derivatives markets.\u00a0 The elements of this framework include regulation of dealers, mandatory clearing, trading, and transparency.\u00a0 The framework established under the Dodd-Frank Act is consistent with that of the G-20. \u00a0The CFTC and SEC are well into their rule-making process.\u00a0 Once again, the United States and the EU have closely cooperated in this area, and have adopted parallel approaches to important issues such as central clearing, trading platforms, and reporting to trade repositories.<\/p>\n
While the reforms set forth a framework for on-exchange-traded derivatives, it is also important for us to make progress on establishing a global regime for margin for bespoke, un-cleared derivatives transactions. \u00a0Both the United States and the EU support international work on global margin standards for trades that are not cleared through a central counterparty. Margin requirements are critical to promoting the safety and soundness of the dealers, and thereby lower risk in the financial system.<\/p>\n