Governments around the world have reneged on a promise to install a level playing field for derivatives trading, it was claimed yesterday.
New rules put in place in Europe, the US and elsewhere to prevent a repeat of the credit crisis are diverging from each other and undermining hopes of building a more robust global trading framework for complex products such as credit default swaps.
The beleaguered derivatives industry, gathered in Chicago for the annual conference of the International Swaps and Derivatives Association, is fighting on multiple fronts against regulations put in place to prevent a repeat of the credit crisis.
But it was the consistency, rather than the quantity, of the new rules that ISDA's chairman, Stephen O'Connor, questioned in his speech.
"While the progress toward reducing systemic risk is real, there is today serious concern about the consequences of some of the other policy initiatives that are under way," he said.
O'Connor said the likes of the Dodd-Frank Wall Street reform laws were not being implemented elsewhere.