In its August 2012 issue, Asia Risk Magazine quotes Mr. Felix Shipkevich in an article discussing the outstanding issues regulators and clearing houses in Asia face in complying with the fast approaching deadline for meeting the Committee on Payment and Settlement Systems (CPSS) and International Organization of Securities Commissions (IOSCO) Principles for Financial Markets Infrastructures.

Says Mr. Shipkevich, “If you have a bank offsetting its risk in the US with counterparties in forex forwards cleared through a CCP, the CFTC has very clear guidelines on the capital requirements. However, if this bank is offsetting its risks with a counterparty in Tokyo and Tokyo a year from not does not define forex forwards as having to be centrally cleared, how are you going to enforce capital requirements in one jurisdiction that do not apply to another?”

To read the entire article, click here.