CFTC Chair Characterizes New Approach To Swaps Regulation As "Principles Based"

In advance of the release of a new framework for swaps reform, CFTC Chair J. Christopher Giancarlo declared that the CFTC would return to its "historic character" as a "principles-based regulator."

In remarks at the Sims Lecture at Vanderbilt Law School, Mr. Giancarlo stated that it is crucial for the CFTC to rely on its core principles when interpreting the application of the law. Mr. Giancarlo stated that the agency had strayed from its "principles-based" approach with respect to the swap market reforms under the Dodd-Frank Act. He confirmed that the CFTC is taking steps to improve the regulation of the swaps market. Among other initiatives, the CFTC will be releasing an improved framework known as "Swaps Reform Version 2.0."