June 15, 2018

Giancarlo, Tuckman Discuss Swaps Reg Version 2.0 on CFTC Talks

Washington, DC — Commodity Futures Trading Commission (CFTC) Chairman J. Christopher Giancarlo and CFTC Chief Economist Bruce Tuckman discuss Swaps Reg Version 2.0, the white paper the two co-authored, on today’s edition of “CFTC Talks,” the agency’s podcast hosted by Andy Busch, CFTC’s Chief Market Intelligence Officer.

The white paper formally titled, Swaps Regulation Version 2.0: An Assessment of the Current Implementation of Reform and Proposals for Next Steps was released in April this year.

On the show, Giancarlo and Tuckman provide insight on the five key areas the paper addresses: Swaps Central Counterparties (CCPs); Swaps Reporting Rules; Swaps Execution; Swaps Dealer Capital; and End User Exception

When asked how this paper compares to the one Chairman Giancarlo wrote in 2015 (Pro-Reform Reconsideration of the CFTC Swaps Trading Rules: Return to Dodd-Frank.), Giancarlo explained this paper is not intended to further develop that paper, but it does try to achieve the same objectives, which is to “demystify a subject matter.” His earlier paper focused on swaps execution only, the current paper looks at a range of aspects of the global swaps market and explains why refreshing how swaps are being regulated is important and pivotal at this time. “This paper also looks forward as to what swaps reform will look like not only in the months to come, but in years to come and well into the future. The process of swaps reform is not a one-and-done approach,” he said.  

Tuckman says that, in working with the Chairman to write the paper, he sought out the enormous amount of wisdom and insight across Commission staff. “I collected and organized those pieces of wisdom and worked with the Chairman to mold this significant knowledge and insight into a cohesive, easy to read, easy to understand explanation of the current state of affairs of swaps reform and the vision going forward.”

Giancarlo and Tuckman comprehensively discuss the five key areas the paper addresses to ultimately explain why the concepts presented are important.