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CFTC’s Giancarlo: New Rules Divide Swaps Market 

November 13, 2014
Katy Burne, Wall Street Journal

A top U.S. regulator said new rules governing the multitrillion-dollar derivatives markets are sending swaps trading overseas, threatening Wall Street jobs and potentially destabilizing financial markets.

In remarks he intended to deliver at an industry conference this week, J. Christopher Giancarlo, the lone Republican among four commissioners at the Commodity Futures Trading Commission, said the agency’s rules have split the swaps market into domestic and foreign niches, as non-U.S. firms seek to avoid CFTC oversight.

Swaps are used by financial institutions and corporations to hedge or speculate on moves in everything from shifts in interest rates to the cost of jet fuel.

Mr. Giancarlo said he had planned to deliver the remarks Wednesday at a conference in New York. He said he withdrew after unsuccessfully seeking a waiver of government ethics rules that view his past work with swaps brokerage firms as a conflict. CFTC Chairman Timothy Massad is scheduled to deliver the keynote speech at the conference Wednesday.

Read more: Wall Street Journal

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