CFTC Chair Recommends Global Swaps Market Reforms

CFTC Chair J. Christopher Giancarlo called for a reexamination of G-20 swaps market reforms and improvement of cross-border central clearing counterparty ("CCP") supervision.

In remarks before the Association of German Banks, Mr. Giancarlo asserted that greater cross-border regulatory harmonization is needed, and reiterated his criticism of proposed EU legislation that would subject U.S. CCPs to overlapping EU regulation.

Mr. Giancarlo described global derivatives market reforms first contemplated at the 2009 Pittsburgh G-20 Summit. He urged regulators to reexamine their actions since then in light of the experience of the past four years of swap regulation. In particular, Mr. Giancarlo said that he "do[es] not subscribe to the 'race to the bottom' thesis of comparative regulation," and argued that regulators "have a duty to apply broad policy prescriptions in ways that enhance markets and their underlying vibrancy, diversity and resiliency." Mr. Giancarlo urged