CFTC Commissioners Consider SEF And Swap Dealer Issues

In the latest issue of The Risk Desk, CFTC Commissioners Dan Berkovitz and Rostin Behnam shared their perspectives on a number of recent proposals, including amending the rules governing swap execution facilities ("SEFs") and the registration threshold for swap dealers.

Mr. Berkovitz, who was sworn in as a Commissioner last month, and who had served as the agency's General Counsel in the previous administration, stated that the Commission should more closely examine SEFs. Conceding that the "trading mandate has not worked totally as the vision," Mr. Berkovitz questioned whether the lack of trading on SEFs is a market condition or "is it that structurally there simply isn't the regulatory framework to make it happen?" He noted the anticipated proposal by the Chairman, saying "[t]his isn't 2012. . . . We're not concerned about the best way to implement this. We're operational now. We're trying to make it better." He also described the positive atmosphere at the