By Simon Miller
The UK financial secretary Mark Hoban has warned that current reforms to derivatives trading must not be at the expense of the industry.
Speaking at the World Federation of Exchanges IOMA conference in London, Hoban praised the industry for its success but warned that lessons had been learned since the financial crisis in 2008.
However, he added: "Reforms are necessary but reforms should be evidence based and not restrict growth or opportunities in this market. But at the same time, the global derivatives trade should not damage the larger economy as a whole."
Hoban added that there was a concern that G20 countries were proceeding with reform at different paces, citing the extra-territorial laws being assumed by the Volker rules currently being introduced in the US.
"This could lead to none-US companies being shut out of the US derivatives market," he commented.
Hoban added: "We were impressed by the speed in which the Dodd-Frank rules were introduced in the US but it appears that it is only now that they are concentrating on the difficult aspects of the reform. While in Europe especially, we are arguing over the detail first."