Two derivatives industry associations are set to merge, forming a global entity combining the Futures and Options Association (FOA) and the Futures Industry Association (FIA).
The combined entity will have a worldwide scope under the brand, FIA Global, and will enable the organisations to strengthen their influence on cross-border regulation.
The FOA is the European industry association, with more 160 members operating in derivatives, while the FIA is based in the US but has an international reach encompassing more than 20 countries and also has an Asian affiliate.
Boards from the FOA and FIA believe the creation of FIA Global will strengthen the ability of both organisations to address global issues affecting the derivatives market. The structure will enable each association to continue to deal with issues within their respective time zones and maintain local contact with members they currently enjoy.
Michael Dawley, chairman of the FIA, said: "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."
The two associations have already been cooperating for some time, running a joint conference in London, the International Derivatives Expo, which takes place next week. They have also participated in joint work on cross-border derivatives issues.
Now that an agreement in principle has been approved by the boards of both groups, approval from FOA members will be sought at a vote on 24 July.