Agreement on derivatives between the United States and the EU: historic turning point on the principle of equivalence of rules

The United States and the European Union have reached an agreement on derivatives: each jurisdiction will apply its own rules to these transactions within its territory, regardless of who carries them out. In other words, the US and the EU agree to consider the reciprocal rules governing the derivatives market essentially identical. This is an agreement of great importance because for the first time the Americans have accepted the principle of equivalence of protections. A principle which now applies to a 633 trillion dollar market which was at the heart of the 2008 financial crisis. And which also represents good news in view of the negotiations which have just begun on transatlantic trade: the principle of equivalence also in other sectors would bring down regulatory barriers giving a strong boost to trade.
The official approval of the agreement, in detail between the Commodity Futures Trading Commission (Cftc) and the European Commission, is scheduled for tomorrow, the day on which the exemption from the rules on transactions for foreign operators such as Deutsche Bank or its foreign subsidiaries expires of US banks.