The CFTC should fix its cross-border guidance and swaps dealer rule, said CFTC Commissioner Scott O’Malia.
He said he had noted that the CFTC’s cross-border application of Dodd-Frank rules had drawn “strong and vocal opposition” and added that the rule would likely foster regulatory uncertainty, fragment the market and make it less appealing for foreign traders.
O’Malia also noted that the CFTC “has not done its best to protect end users” in swap transactions. The rule, he said, makes it hard to determine who qualifies as a swap dealer subject to CFTC registration, and thus limits the market to -- and concentrates risks among -- large Wall Street banks.
In a letter Friday, ABA asked Congress to clarify cross-border rules and to clearly define “eligible contract participants” in over-the-counter swaps.
Read the speech.
Read ABA’s letter.