CFTC Chair J. Christopher Giancarlo unveiled a plan for reforming swaps regulation in a white paper co-authored with CFTC Chief Economist Bruce Tuckman. In the paper, Mr. Giancarlo and Mr. Tuckman (the "authors") asserted that reforms should better balance systemic risk resiliency with capital markets vibrancy. The authors assessed CFTC implementation of swaps reform in the areas of clearing, data reporting, execution, dealer capital and mandatory margin in order to a map out a direction for the future. General regulation of swap dealers was not addressed.
The white paper covers areas of successes and deficiencies and contains a number of recommendations. The areas reviewed include:
The paper was unveiled at ISDA's 33rd Annual General Meeting. In accompanying remarks, Mr. Giancarlo argued that the regulators had a duty to revisit reforms that were quickly adopted in the wake of the financial crisis. He emphasized that the CFTC has accumulated sufficient experience and data from the first iteration of swaps reform for a comprehensive assessment. Responding to a question about the feasibility of adopting an ambitious revamp during his remaining tenure, he stressed that it is important to adhere to regular order to get reforms right but pledged to "get this done."