One of the ways countries are managing these inconsistencies is by recognizing each other’s regulatory approaches when they achieve similar prudential outcomes. In this regard, the U.S. Commodity Futures Trading Commission (CFTC), which took the lead in OTC derivatives rule-making in the United States, has recognized that OSFI’s requirements are equivalent to the U.S. rules in a number of cases.
18 However, the Commission still wants Canadian banks to submit to its oversight, which could include on-site visits. Canadian and U.S. authorities are working together to limit the additional burden this places on affected banks. As noted, monitoring exposures in the derivatives market is important for helping to reduce systemic risk. To do so, authorities need access to transactions data held in trade repositories.