Isda's O'Malia: CFTC rules need reassessing

Author: Zoe Thomas | Published: 9 Dec 2014

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...