US and EU regulators are stuck in an apparent disagreement about how conservative post-financial crisis rules should be.
European Union and U.S. negotiators are struggling to move past some stumbling blocks in talks over mutually acceptable rules for derivatives clearing houses, two people familiar with the talks said. Negotiators hope to reach a deal by June 15, when new capital requirements kick in for European banks that would make it prohibitively expensive for them to do business with U.S. clearing houses. EU and U.S. negotiators want to reach an agreement that would allow clearing houses to follow their home regulator's rules, instead of having to comply with two sets of rules. One sticking point is Europe's refusal to approve U.S. clearing houses. The EU believes U.S. margin rules are too weak, the two people said. Margin rules cover how much cash clients must put up to purchase derivatives.