英语文摘:Geithner calls for global standards to regulate derivative markets

WASHINGTON, June 6 (Xinhua) -- U.S. Treasury Secretary Tim Geithner said on Monday that a global approach of constraining risk in the derivative markets is essential for avoiding the risk of another round of financial crisis.

"Just as we have global minimum standards for bank capital -- expressed in a tangible international agreement -- we need global minimum standards for margins on uncleared derivatives trades," Geithner said in his remarks to the International Monetary Conference held in Atlanta, Georgia.

Citing the progress made to date since the implementation of the Wall Street reforms through the Dodd-Frank Act enacted in July 2010, the treasury secretary described capital requirements and derivatives as foremost among the challenges of international cooperation on financial reforms.

Derivatives trading, which was mostly unregulated, was considered a major threat to the global financial stability.

Geithner said that the world needs to develop a global margin standard, not only on minimum standards for bank capital, but also for margins on uncleared derivatives trades.

He also called for global cooperation in this field.

"We will do what we need to do to make the United States' financial system stronger," Geithner said. "And as we do it, we will bring the world with us."

"Without international consensus, the broader cause of central clearing will be undermined," Geithner warned, adding that risk in derivatives will become concentrated in those jurisdictions with the least oversight.

"This is a recipe for another crisis," he stressed.