Market urges CFTC to be cautious with SEF rule changes

Author: John Crabb | Published: 1 Mar 2019

Market participants in the swaps trading industry are urging the Commodity Futures Trading Commission (CFTC) to exercise caution when it finalises proposals to revamp swap execution facility (SEF) rules.

Speaking at the International Swaps and Derivatives Association’s (Isda) DerivCon this week in New York, multiple members of the swaps industry said that while changes to the rules were welcome, the CFTC should ensure it is addressing problems that need to be solved, and not simply adding speedbumps to the process.

Industry participants do accept that the rules need to be revisited, though: nearly three-quarters of those in attendance agreed on that.

CFTC chairman Christopher GiancarloProposalsIn November 2018, the CFTC issued proposals that would change the restrictions placed on SEF activity and allow flexible methods of execution for swaps transactions using any means of interstate commerce. As CFTC Chairman Christopher Giancarlo stated at the time, this was exactly as Congress...