NEW YORK, April 28 (Reuters) - Italy's UniCredit
would not register to trade over-the-counter derivatives with
U.S. companies on concerns new rules to trade them will come
with high costs and burdensome reporting requirements, the
Financial Times said on Sunday.
UniCredit, Italy's largest bank by assets, was the biggest
foreign bank yet that has decided to avoid complying with
tighter U.S. rules even at the risk of reducing its access to
capital, according to the newspaper.
As a part of its plan to tighten oversight of a lightly
regulated $640 billion market, the U.S. Commodity Futures
Trading Commission required foreign banks to register as swap
dealers so they could trade derivatives with their U.S.
The U.S. regulator extended the deadline for banks to
register as swap dealers until July.
T.J. Lim, the head of UniCredit's capital markets business,
told an industry gathering in Singapore last week that the CFTC
rules and related concerns meant his bank had decided not to
register, the FT said.
The paper, citing banks and lawyers, said the cost for
European and Asian banks to trade derivatives could prove too
high especially for those that do not do much business in the
Singapore's DBS Bank - Southeast Asia's largest bank - and
Sweden's Nordea said late last year they would not
register as swap dealers with the CFTC, according to the FT.