CFTC Releases White Paper Outlining Swaps Reform Progress

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CFTC chairman J. Christopher Giancarlo released Swaps Regulation Version 2.0: An Assessment of the Current Implementation of Reform and Proposals for Next Steps, co-authored with CFTC Chief Economist Bruce Tuckman. The white paper assesses the agency's implementation of swaps reform, determines its strengths and deficiencies and recommends certain improvements to the current swaps market reform framework. The paper takes a comprehensive look at five key areas: swaps central counterparties; swaps reporting rules; swaps execution rules; swap dealer capital; and end user execution. Its recommendations include that the CFTC look to collaborate with other authorities to cultivate the development of "regulator nodes" on distributed ledgers and that the CFTC focus on raising standards of conduct for swaps trading, rather than trying to determine SEFs' swaps execution business model.