Philip McBride Johnson ponders the thorny issue of Dodd-Frank's extraterritorial reach.
Imposing standards beyond national borders has always been a
tricky task. On the one hand, financial markets are truly
global today, and what happens in Jakarta can impact London and
New York in very direct (and potentially damaging) ways. On the
other hand, what right does one jurisdiction have to impose its
rules on another sovereign state?
Under Chapter 7 of the US's Dodd-Frank Act, the Commodity
Futures Trading Commission is expected to do just that, and the
CFTC is pondering how to proceed. This has provoked push-back
by almost all major foreign financial centers and their
respective home regulators. The CFTC, as a result, is likely to
defer a decision for awhile. But, eventually, it will have to
This article is available to subscribers and registered users
Please log in to continue reading.
Not yet registered? Take a free trial.
If you have already taken a free trial you
have ongoing access to the analysis section of FOW.com including this story.
Log in using your details below to read.
Already have an account? |