UPDATE 1-U.S. regulator adopts cross-border rules for swaps
WASHINGTON, July 12 (Reuters) - The top U.S. derivatives regulator on Friday adopted guidelines on how to apply its rules abroad, granting some respite to Wall Street banks worried that a jumble of new international rules would hurt their business.
The U.S. Commodity Futures Trading Commission allowed foreign branches of U.S. banks to comply with other countries' regulators for some of its trading rules, but only after a determination of whether the rules were tough enough.
The so-called final guidance was the last major piece of a raft of new rules the CFTC is writing in an effort to make the $630 trillion derivatives market safer after the devastating 2007-2009 credit crisis.
The CFTC, led by former Goldman Sachs banker Gary Gensler, also granted banks a period of delays during which the new rules would be phased in.
The adoption of the rules in a public vote at the CFTC's headquarters in Washington came after Gensler reached a deal earlier this week with the European Union to coordinate international rules.
Banks such as Citigroup, JPMorgan and Bank of America, which dominate the lucrative derivatives market, had been anxiously waiting to see how the finer print of the rules would come out.
The CFTC voted 3-1 in favor of the guidance, with Republican Commissioner Scott O'Malia dissenting.