The top U.S. swaps watchdog is apologizing for what he says was past overreach by his agency in dealing with international derivatives oversight and calling for more deference to rules governing trading in other countries.

The Commodity Futures Trading Commission's (CFTC's) approach to post-crisis rule-making has at times “alienated” foreign regulators, Chairman J. Christopher Giancarlo said Tuesday in comments prepared for a speech in London. The U.S. agency should respect rules adopted abroad as long as they are comparable, he said, while also asserting his agency's “exclusive” right to make rules for its markets.

“The CFTC should move to a flexible, outcomes-based approach,” Giancarlo said, adding that his agency “and its global counterparts should recommit themselves to working together to implement a deference process.”