“Financial markets are global—more integrated than ever before.  To protect our economy from risks that arise outside the United States and to provide a fair and level playing field for U.S. firms, we need a more level playing field globally. [...] And because in some areas U.S. reforms are tougher or just different from the rules forthcoming in other markets, we need to figure out a sensible way to apply those rules to the foreign operations of U.S. firms and the U.S. operations of foreign firms.  This is very complicated and another example of where we need a clearly articulated common approach across the U.S. regulatory agencies.”

Treasury Secretary Timothy Geithner, State of Financial Reform (Feb. 2., 2012)

“As of the date of this Report, neither the CFTC nor the SEC has disclosed the extraterritorial application of our proposed or final rules. Under both the proposed and final rules it appears that U.S. rulemakings would apply to entities and activities in foreign jurisdictions. For example, the application of the proposed rule regarding the CFTC’s entity definitions would make U.S. financial and non-financial entities subject to mandatory clearing and capital requirements, even if they operate outside the U.S., while foreign competitors may not be so constrained. Until the Commissions specifically define the extraterritorial application of these rules we exacerbate the significant regulatory uncertainty for global market participants.”

CFTC Commissioner Scott O’Malia, Statement of Dissent to CFTC-SEC Report on International Swaps Regulation pursuant Dodd-Frank, Section 719(c) (Jan. 31, 2012)