Commentary: U.S.-EU deal fails to address clearinghouse issues

Coordination of derivatives-trading rules by the U.S. and the European Commission is a step in the right direction, writes Hal Scott, a professor of international financial systems at Harvard Law School. "However, the agreement's failure to address conflicts in rules for clearinghouses -- which will handle the vast majority of the trades and the trillions of dollars of collateral posted by the world's largest banks -- is a troubling omission. There is still much work to be done," writes Scott, who is also director of the Committee on Capital Markets Regulation.

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