IATP does not believe that the challenges to harmonization of substantive rules sufficient to satisfy Dodd-Frank comparability requirements, exemplified above, are insurmountable. We strongly prefer an MOU for negotiating differences on substantive rules and their implementation to the negotiation of a Mutual Recognition Agreement that recognizes regulatory regimes as comparable without an auditing procedure for reviewing the implementation of major rules in the covered jurisdictions. We do believe however, that to negotiate and monitor robust MOUs, new configurations of international regulatory cooperation will be needed beyond what the CFTC currently practices. While the negotiation of an MOU is clearly a CFTC responsibility, monitoring of whether foreign regulatory bodies meet Dodd-Frank comparability criteria requires feedback from a broad array of market participants.
