CFTC Leaders Respond To Criticisms Raised In Vatican Document

CFTC Chair J. Christopher Giancarlo and CFTC Chief Economist Bruce Tuckman responded to criticisms outlined in the Bollettino, a document released by the Vatican that "lays out ethical foundations to govern economic and financial systems." The CFTC leaders defended derivatives and credit default swaps ("CDS"), which were subject to particular scrutiny in the document.

Mr. Giancarlo and Mr. Tuckman emphasized that it is important to recognize the "social utility" of derivatives. They asserted that derivatives products help to "moderate price, supply and other commercial risks" which can facilitate economic growth and prosperity. Additionally, they highlighted that derivatives can be tools for risk transfer and mitigation, particularly in agricultural communities.