Global regulators will meet in New York on Wednesday, hoping to hammer out a deal on how to jointly supervise the $650 trillion derivatives market, a thorny issue they have to solve before the end of the year.
Years after opaque derivatives markets were widely blamed for exacerbating the financial crisis that peaked in 2008, regulators have largely completed new rules to make the industry less susceptible to sudden crashes.
They are now facing the task of ensuring the rules are similar in each country so as not to allow banks to shift their business to jurisdictions with softer rules, while at the same time keeping markets competitive.
The Commodity Futures Trading Commission - the top U.S. derivatives watchdog - has been criticized by regulators in Europe and Asia for its aggressive stance in applying domestic U.S. rules to traders abroad.
Together with the U.S. Securities and Exchange Commission, it will now host a meeting for international derivative regulators on Nov. 28,
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