The Commodity Futures Trading Commission (CFTC) has granted a capital comparability determination for French nonbank swap dealers, allowing them to meet U.S. capital and financial reporting requirements by adhering to French law. This decision, announced on May 12, enables CFTC-registered swap dealers in France to rely on the European Union's Investment Firms Regulation (IFR) and Investment Firms Directive (IFD) instead of maintaining dual compliance with U.S. regulations. The order, termed "conditional substituted compliance," requires firms to notify the CFTC and obtain confirmation before utilizing this framework. Additionally, firms have a 180-day period to comply with any new obligations under the order. This move addresses regulatory fragmentation post-2008 financial crisis reforms, aligning U.S. and EU standards for nonbank financial firms.