Recognising the pressure they are under to resolve the differences between EC and USA, Jonathan Hill, European Commissioner for Financial Stability, Financial Services and Capital Markets Union, and Timothy Massad, Chairman of the US Commodity Futures Trading Commission (CFTC), have issued a Press Release saying that they “met in Brussels on Thursday, 7 May, to continue their discussions on a possible equivalence decision by the European Commission for central counterparties (CCPs) that are regulated and supervised by the CFTC.”

Not surprisingly, the Press Release said, “This is an important issue for corporate treasurers who use derivatives markets for hedging currency and other risks.” (As if corporate treasurers did not know this.)

The Hill and Massad, statement continued:

• “As home to the world's two largest derivatives markets, we are committed to ensuring financial stability by ensuring an appropriate treatment of risks, as well as ensuring market participants can operate cross border in a global marketplace.
• “Discussions are constructive and progressing. They have been mutually satisfactory on the issue of the ability for both sides to potentially defer to each other's rules.
• “Commissioner Hill and Chairman Massad agreed to continue their discussions with the aim of finalising an approach by the summer.”

---

CTMfile take: This would be laughable, if it wasn’t so important for corporate treasury departments. However, now corporate treasurers know that the approach will be finalised by the summer (September 30th?), but no mention when this new approach will be implemented.