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Two big derivatives industry groups combine to strengthen voice

First Published 20th June 2013

The Futures and Options Association and the Futures Industry Association to form a confederation aimed at strengthening their influence on cross-border issues and providing a global voice for members.

Walt Lukken, CEO, FIA

Walt Lukken, CEO, FIA

"This new affiliation will address a major industry concern-the fragmentation of derivatives markets along jurisdictional lines."

London/Washington DC - The Futures and Options Association and the Futures Industry Association agreed in principle to combine under one global structure and call themselves FIA Global.

Under the accord, FIA and FIA Asia will form a confederation with FOA, with the aim of strengthening their influence on cross-border issues and providing a global voice on behalf of members.

"The value created by combining these organisations is multifold," Michael Dawley, the chairman of the Futures Industry Association, said in the news release.

"With a global voice and brand, we will have the platform to efficiently and effectively maximise our efforts on behalf of the collective membership. The current focus on the critical need for international regulatory coordination highlights our belief that this combination couldn't come at a more important moment in time."

FIA Chief Executive Officer Walt Lukken said the affiliation will address a major industry concern, namely the fragmentation of derivatives markets along jurisdictional lines. "Through this new affiliation we will be better able to coordinate our responses to global issues and provide industry support for global standards. This will be tremendously beneficial for our members and policymakers alike."

Under the agreement, the FOA plans to change its name to FIA Europe, while both organisations will continue to operate with their own leadership and staff, separate boards of directors, and distinct membership. The groups said the initiative for the affiliation stems from the increasingly global nature of derivatives regulation.

They said the affiliation had the following goals:

  • to enable the associations to speak as one global voice to better reflect and represent the cross-border nature of the derivatives business;
  • to extend the global reach of the industry and strengthen the influence of the associations both locally and globally;
  • to enable the associations to pool and target resources and expertise as issues arise regionally and around the globe; and
  • to enable the associations to align policies and strategies to create operational and regulatory efficiencies for members.

FOA Chairman Steve Sparke said the move would critically preserve the ability for it to take the lead role in the European arena.

FOA Chief Executive Officer Anthony Belchambers said: "This builds on a transatlantic partnership which has been growing in strength for more than a decade and will put both organisations in a better position to meet a new wave of global challenges and lead the way towards greater harmonisation of international regulatory standards."

The agreement in principle has been approved by the boards of directors of FOA and FIA. It needs to be presented to FOA members for a vote, as required by FOA Articles of Association. That meeting is provisionally scheduled for July 24.