CFTC Chairman Gensler Remarks on LIBOR and Swaps Regulation (with Lofchie Comment)

CFTC Chairman Gary Gensler delivered remarks before the Institute of International Bankers’ ("IIB") Annual Washington Conference regarding matters on the CFTC's agenda that Gensler believes will be of importance to the IIB. Chairman Gensler repeated his prior criticisms of LIBOR as well as his description of Dodd-Frank as being "common-sense rules of the road" for the swaps market.

Lofchie Comment: Whether the Dodd-Frank swap rules are good or bad, they can not be fairly described as "common-sense rules." They are immensely complicated, likely to discourage business, often inconsistent, and sometimes technologically impossible. See, by way of example, two items from yesterday's news: (i) Survey of Buy-Side Market Participants Shows Lack of Enthusiasm for the CFTC's SEF Proposal (with Lofchie Comment) and (ii)SIFMA Submits Comments to the CFTC Requesting Additional Relief for Requirements under the Internal Business Conduct Rule (with Lofchie Comment).

View remarks in full here (links externally to Word doc).