CFTC: no swap market complacency amid Chinese pressure

Author: John Crabb | Published: 9 Aug 2018

The US derivatives market could lose its undisputed claim as the primary commodity market in the world, following the development of the Chinese markets as a viable regional price benchmark in particular.

Speaking before the House Committee on Agriculture in Washington DC, chair of Commodity Futures Trading Commission (CFTC) Christopher Giancarlo suggested this could have important competitive implications in both jurisdictions.

"We cannot be complacent about the historical primacy of our derivatives markets. Our best response for US commodity market participants and, indeed, for global markets, is to ensure that derivatives markets in the United States are unrivaled in their openness, orderliness, [and] liquidity," he said.

China initially launched oil futures contracts on the Shanghai International Energy Exchange in March 2018, the first futures listed on its mainland to be targeted at overseas investors. Others have followed suit, including iron ore, and yet more have been said to be...