US regulators are exploring ways to give large foreign banks and overseas subsidiaries of US lenders a reprieve from stringent new derivatives rules, potentially alleviating one of the biggest concerns facing global financial institutions.

The US Commodity Futures Trading Commission wants temporarily to exempt swap dealers that fall under non-US jurisdictions from complying with post-financial crisis regulations on derivatives transactions, said people familiar with the matter.

New rules such as higher capital requirements, the mandated posting of margin, central clearing and tighter business conduct standards are aimed at reducing systemic risk. Wall Street analysts have warned investors that these rules are expected to take a significant bite out of bank earnings power.