CFTC rules could force European funds to break the law

Many European hedge funds count as US persons under proposed cross-border guidance from the Commodity Futures Trading Commission – potentially forcing them to comply with trading rules on both sides of the Atlantic. That looks impossible. Lukas Becker reports

Wayne Pestone

Of all the unappetising choices to come out of over-the-counter derivatives market reforms, European hedge funds face arguably the worst – whether to break their local rules or those in the US. The way new OTC trading rules in each jurisdiction are written, it appears they will be subject to both, but will only be able to comply with one or the other.

The problem arises because many European funds are expected to be treated as US persons for the purposes of the Dodd-Frank Act, requiring them to

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here