Confirmation of the final Communiqué and work program follows publication for comment of a proposed plan on March 31, 2005. The proposal in turn followed a Round-Table that was held at the CESR headquarters in Paris, France on February 10-11, 2005.
The work program incorporates the views of organized derivatives markets, intermediaries and end-users from the United States and the European Union concerning practical operational issues that most affect their conduct of trans-Atlantic business in exchange-traded derivatives and related transactions, and cooperative strategies to further a compatible business and regulatory environment.
Under the terms set forth in the work program, a task force drawn from the CFTC and CESR will be established to review issues relating to enhanced transparency and clarity of regulatory developments, simplified access or recognition procedures, and targeted consultation on cross-border issues, as well as to consider issues raised by the derivatives industry and end-users.
During the consultation (which closed on May 15, 2005) 13 comment letters were received from two intermediaries, seven derivatives exchanges and four trade associations (three representing intermediaries and one representing swap dealers). As noted in the separate « Feedback Statement » summarizing the comments, respondees generally supported the work program as proposed but offered certain enhancements and clarifications. As explained in the Feedback Statement, it is intended that the comments identifying issues of more particularity be tabled by the Task Force as part of their more general deliberations.
CFTC and CESR have committed to ensure that the regulatory Task Force will ensure, through a variety of means, including targeted consultations, and possible formation of working groups or additional roundtables, that there is meaningful and ongoing involvement of the derivatives industry and end-users in the US and EU in order to assist in the identification of issues and the development of practical solutions. In order to facilitate specific deliberations of the Task Force, all letters that were received in response to the March 31, 2005 Communiqué will be provided to Task Force members. In addition, the Task Force will seek to involve the derivatives industry and end-users at the earliest stage in its deliberations.
Additionally, to the extent that matters are identified that require for resolution the cooperation of other authorities, it is the intention of CFTC and CESR to explore means to best pursue such cooperation.
CFTC’s Acting Chairman Sharon Brown-Hruska said:
“I am extremely pleased to be here in London to join Arthur Docters van Leeuwen in announcing the final adoption of the Communiqué and Work Plan, which CFTC and CESR have jointly sponsored.
I am also pleased that the comment process led us to make clear our intention that market participants, market operators, exchanges and end-users continue to be involved in the development of responses to the issues identified in the work program. Now it is just a question of getting down to work and delivering practical and achievable results. I am confident that today’s major step forward in our transatlantic relationship will move us closer to the seamless marketplace to which I am committed.”
CESR’s Chairman Arthur Docters van Leeuwen noted:
“Today marks an important and practical step forward – we now have a concrete work programme to realize which will lead to a focused and productive dialogue with tangible results. This has ensured this dialogue has commenced with considerable impetus and has laid a solid foundation on which CESR and the CFTC can build.“
