CFTC Chair Opines On Benchmark Reform

CFTC Chair J. Christopher Giancarlo recommended (i) reducing the number of obstacles to swaps clearing and (ii) transitioning away from LIBOR to alternative risk-free rates.

In remarks before the 2018 Financial Stability Conference in Washington, Mr. Giancarlo discussed two aspects of the CFTC approach to G-20 reforms: swap trading and clearing. He highlighted the CFTC's recent proposal to amend its swap trading rules, saying that the changes would have the rules "encompass a wider scope of trading activity while enabling greater transactional flexibility." In addition, Mr. Giancarlo discussed efforts to remove impediments to clearing. He cited the findings of a recent study sponsored by the Financial Stability Board on incentives to clearing (noting the CFTC co-chaired the study), and indicated that the CFTC will continue working with banking regulators to "educate them about the regulatory framework in place for cleared derivatives." In particular, Mr. Giancarlo