A group of financial industry lobby groups are calling on U.S. lawmakers to ensure greater harmonization in the rules governing cross-border derivatives trades.

The 13 trade groups — including the American Bankers Association (ABA), the Financial Services Forum (FSF), the Futures Industry Association (FIA), the International Swaps and Derivatives Association (ISDA), the Investment Company Institute (ICI), and the Securities Industry and Financial Markets Association (SIFMA) — sent a joint letter to the U.S. Senate Banking Committee and the Agriculture Committee expressing concerns about the lack of harmonization between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) on how to apply reforms introduced under the Dodd-Frank reforms to cross-border derivatives trading.

The letter calls on Congress to work with the CFTC and the SEC to ensure that derivatives reforms are implemented “in a responsible and harmonized manner.” In particular, they are concerned about the imminent expiry (on July 12) of a CFTC exemption from proposed guidance that would extend the CFTC’s regulatory reach to foreign markets.

The trade associations are calling for a six-month extension of the CFTC exemptive order, which, it says, would give clarity to the industry, and allow further harmonization to occur. “Ultimately, failure to extend the existing exemptive order, or rushed efforts to finalize more permanent cross-border guidance before July 12th, would have avoidable consequences for U.S. competitiveness and business certainty, and could undermine sound and coordinated regulation that better protects our financial markets and the job creators they serve,” the letter says.

The SEC’s rules in this area are out for comment until August 21, which the trade groups say creates “a most certain mismatch on both content and timing.”

“We believe it is of critical importance that the CFTC and SEC harmonize their views on the cross-border application of swap rules, and that they also align the timing of comment periods and implementation to minimize market disruptions and promote consistent regulation,” it says.

Additionally, it says that allowing the exemption to expire could jeopardize harmonization efforts with authorities in other jurisdictions, particularly Europe. “We are concerned that expiration of the exemptive order at this time would be counterproductive and disruptive to the markets, and believe that an extension of the exemptive order for at least six months would provide the necessary time for better and consistent policy, both in the U.S. and abroad.”