Six months after becoming chief of the global
OTC trade body, Scott O’Malia discusses his plans
for the cross-border derivative market
It's been a year of change for Scott O'Malia. In
July he resigned as commissioner at the Commodity Futures
Trading Commission (CFTC). A month later, he became CEO of the
International Swaps and Derivatives Association (Isda).
The Association he now heads has played a leading role in
navigating the hurdles, and sometimes gaping holes, in
post-crisis cross-border swaps reforms. The immense regulatory
changes prompted by the G20 Pittsburgh summit in 2009 have
often favoured national policy over international compromise.
It follows that one of O'Malia's key mandates is to help
regulators from around the world reconcile differences that
could disrupt the global derivatives market.
Isda's latest initiative, the Resolution Stay Protocol, is a
case in point. It intends to prevent swap counterparties
simultaneously unwinding derivatives contracts with a...