FIA paper on the necessity, path and related issues of opening the financial futures market

13 October 2020


FIA greatly appreciates CFFEX’s interest in these critical topics that affect the global financial markets and the end-users who rely on derivatives products for price certainty and to hedge their risks. FIA strongly supports the regulatory recognition and deference model that has been the foundation of the futures industry for years. Identical rules, on a line-by-line basis, implemented globally across jurisdictions is impracticable.

Rather, the goal we should strive to achieve is ensuring equivalent regulatory outcomes. To make regulatory recognition possible, regulators should strive for convergence by participating and implementing international standards. That adoption of standards and recognition, of course, is followed by close cooperation and coordination among regulators. Recognition, implementation of global standards and cooperation avoids market fragmentation, protectionism and regulatory arbitrage and supports the global nature of today’s markets.

It is imperative we get these cross-border issues right. The stakes are incredibly high. Without common ground, we may find ourselves with fragmented markets and regulation. That doesn’t benefit anyone, especially customers and end-users.

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