A group of eight trading associations have cautioned the U.S. and European Union regarding certain proposed derivatives trading rules, Financial Times reports. The different legislative initiatives in the U.S. and Europe may increase financing costs and create material risks for the global economy because of lack of co-ordination.

Some of the areas, which may be affected by the diverging rules, include duplicative licensing, authorization and registration regimes and the extraterritorial application of margin requirements to the non-U.S. units of U.S. financial firms. The associations issuing the warning include the European Banking Federation and the Futures and Options Association.

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