OTC derivatives supplement

Global consistency a pipe dream, as national regulators go their own way

There are increasing signs that the dream of developing a globally consistent set of derivatives and bank capital rules will be just that – a dream. Whether it is the European exemption from the credit valuation adjustment capital charge, various attempts by national supervisors to clamp down on modelling freedoms applied by their banks, or the slow creep of the Dodd-Frank Act beyond the shores of the US, there is growing evidence that regulators will do whatever they think is right for their