Treasury official touts financial overhaul in London

Wolin spoke as European governments are seeking to contain a financial crisis that now threatens Ireland, which is having trouble borrowing money at high interest rates.

He offered support for the requirement in the financial overhaul that requires standardized derivatives be centrally cleared and all derivatives be reported to trade repositories, and praised the European Commission’s similar central clearing proposal.

“Derivatives should reduce risk, not magnify it. They should be a force for stability, not contagion. By bringing the derivatives markets out of the shadows, the new law benefits every business that uses derivatives to manage real risks,” he said. “We look forward to continued collaboration on their future work on derivatives trading and market abuse — ensuring that we have open, transparent and non-discriminatory regimes, without geographic mandates, on both sides of the Atlantic.”

However, he recognized that not all nations will follow the exact same path laid out by the U.S. legislation.

“While global convergence is essential in areas such as capital and derivatives regulation, in other areas the reforms we seek may be best served by different nations pursuing different means. A specific implementation approach that works for the United States may not work for the United Kingdom,” he said. “But we should never forget that we all have the same goal. We need a level playing field.”