Signs emerge that Europe, U.S. are diverging on derivatives reform

Policymakers in Europe and the U.S. will kick off the year by tackling the overhaul of financial regulation, including rules related to the derivatives market. However, indications are coming to light that the U.S. and Europe are diverging in their approach to overhauling derivatives regulation. "Should there be a disparity between levels of capital charges, market participants will simply move to the business center with lower capital charges," said David Clark, chairman of the Wholesale Market Brokers Association.