CFTC Commissioner J. Christopher Giancarlo released a white paper titled "Pro-Reform Reconsideration of the CFTC Swaps Trading Rules: Return to Dodd-Frank" (the "White Paper"), which proposes an alternative to the CFTC's swaps trading framework.
The White Paper is critical of the implementation of the swaps trading framework, asserting that there is a "fundamental mismatch" between the CFTC's framework and the "distinct liquidity and trading dynamics of the global swaps market." According to the White Paper, the CFTC framework is "highly over-engineered, disproportionately modeled on the U.S. futures market and biased against both human discretion and technological innovation."
The White Paper identifies a number of adverse consequences of the "flawed" swaps trading rules, and proposes an alternative swaps trading framework that "better aligns with swaps market dynamics and is more true to congressional intent." The alternative framework is built upon five tenets:
Click here to view a summary of the White Paper prepared by Delta Strategy Group.
See: "Pro-Reform Reconsideration of the CFTC Swaps Trading Rules: Return to Dodd-Frank" by Commissioner Giancarlo; Commissioner Giancarlo's TabbFORUM Speech; CFTC Press Release.
See also: Wikipedia article "White paper."