Speaking during the opening panel at the 2013 International Derivatives Expo this morning in London, the leaders of some of the world’s leading exchanges answered what can only be described as a ‘delicate’ question:
Which global regulator is easiest to deal with and why?
Phupinder Gill, Chief Executive Officer, CME Group: It starts with Asia. The Monetary Authority of Singapore is very business-oriented in their approach. … Dealing with the regulators in the U.S., there are some things that have occurred that have been good. The dialogue has been constructive for the most part both in Europe and the U.S. As we established the CCP here a couple of years ago … the conversation went quite well. But, the thing that I have to say is that as we look forward at the challenges we face, one of the larger cost components that did not exist in the past is the regulatory compliance piece. Whether you are dealing with Brussels, London, ESMA, CFTC, ESMA, I don’t have a vote. Each is equally challenging.
Andreas Preuss, Chief Executive Officer, Eurex: In Europe we have to live with the reality that we are 27 countries and in the U.S., I would expect that my peers are probably giving each other “high-fives” because there is only one market. The regulatory evolution in the U.S. is a reflection of the much less-complicated regulatory progress than in Europe. … We live in a world of complete “unlevel” regulatory playing field with market participants who are running a global business. This is not about favorite or not so favorite regulator. This is about it about It would be good if the global regulatory community embraced stronger than it does so far that global derivatives trading on exchanges has been good for global markets and has not been served optimally by the continued existence of a very “unlevel” regulatory environment.
Muthukrishnan Ramaswami, President, Singapore Exchange: What we try to do is first get CPSS IOSCO compliant. Then the rest really becomes more about reporting obligations and ticking the boxes in the spirit of what we comply with. That’s the path we try to take.
More details from the “View from the Top” panel at IDX 2013.
Bruce Hamilton, Managing Director, Morgan Stanley
Remco Lenterman, Managing Director, IMC Trading, and Chairman, FIA European Principal Traders Association
Steve Sparke, Chief Operating Officer, Marex Spectron and Chairman, Futures & Options Association
Charlotte Crosswell, Chief Executive Officer, NASDAQ OMX NLX
Phupinder Gill, Chief Executive Officer, CME Group
Finbarr Hutcheson, Chief Executive Officer, NYSE Liffe
Andreas Preuss, Chief Executive Officer, Eurex
Muthukrishnan Ramaswami, President, Singapore Exchange
Jeffrey Sprecher, Chairman & Chief Executive Officer, IntercontinentalExchange