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Top executives of the two largest U.S. derivatives exchanges say regulators must take further steps to align Dodd-Frank Act rules with those of foreign counterparts to avoid oversight splits that could harm markets. 

The Commodity Futures Trading Commission and overseas agencies have a few months to improve coordination before differences hurt business, IntercontinentalExchange Inc. Chairman and Chief Executive Officer Jeffrey Sprecher said in remarks for a House Agriculture Committee hearing where he will testify alongside CME Group Inc. Executive Chairman Terry Duffy.

Unless you're employed by a derivatives trading desk at a large bank, here's some good news: The derivatives cabal is slowly but surely headed for a break-up.

The Commodity Futures Trading Commission yesterday approved new derivatives rules required under the 2010 Dodd-Frank financial reform law. They dictate how buyers and sellers must enter contracts, including credit-default swaps and interest-rate swaps, in the $633 trillion market.

Financial regulators have given themselves until September to try to resolve differences over how to supervise derivatives markets in the wake of the financial crisis, a U.S. watchdog said on Wednesday.

Leaders of the Group of 20 economies (G20) pledged in 2009 to make off-exchange traded derivatives like credit default swaps more transparent. They wanted rules in place by the end of 2012, but this has proved difficult to achieve.

Mexico is planning to launch derivatives rules this year in sync with its northern neighbor but is concerned an overly tough regime could push trades into the United States where they are subject to less oversight, Mexico's chief bank regulator said.

U.S. regulators are hammering out a raft of new rules aimed at boosting transparency in the swaps market after risky derivatives trading helped fuel the 2007-2009 financial crisis and led to multi-billion dollar taxpayer bailouts.

The top U.S. derivatives regulator will discuss next week keenly awaited rules for swaps trading that have the potential to weaken Wall Street's dominant position in the $650 trillion market.

The design of so-called Swap Execution Facilities, or SEFs, is the last remaining building block in the Commodity Futures Trading Commission's overhaul of the derivatives market after the 2007-09 credit meltdown.

Sixty percent of derivatives end-users who face regulatory requirements from Dodd-Frank are not yet prepared for compliance, according to a recent survey of 156 end-users from derivatives advisory firm Chatham Financial.

The survey found that the vast majority of end users facing compliance requirements from Dodd Frank and EMIR are underprepared to meet obligations for both sets of rules.

A U.K. challenge to overturn parts of a short-selling law that would allow bans on naked credit- default swaps tied to sovereign debt will be heard by the European Union’s top court on June 11.

The EU Court of Justice in Luxembourg added the hearing date to its updated diary today. The U.K. last year appealed the new law, seeking to overturn parts it argues may give an EU regulator too big a mandate.