Global Markets, National Toolkits

A key trend that has characterized implementation of the international agenda to regulate derivatives has been the emergence of a number of disputes over the territorial scope of regulation, as different countries have sought to extend their regulatory oversight over firms and markets that are not legally domiciled in their jurisdiction. What explains the emergence and continuation of these extraterritorial measures in the regulation of global OTC derivatives markets? This chapter addresses this question by exploring the “regulatory land grab” that has characterized the rules introduced in the United States and the European Union to regulate foreign dealers, CCPs, and trading venues. This chapter will argue that the different degrees of extraterritoriality that have emerged in the post-crisis agenda reflect the challenges that regulatory authorities have faced to implement the new prudential agenda in a manner that addresses the highly internationalized nature of derivatives markets.