CFTC Names New Director of Division of Clearing and Risk
Commentary by Steven Lofchie
CFTC Chair J. Christopher Giancarlo appointed Brian A. Bussey to be Director of the Division of Clearing and Risk ("DCR"). In this role, Mr. Bussey will oversee derivatives clearing organizations and other market participants in the clearing process, including futures commission merchants, swap dealers, major swap participants and large traders. He will begin on October 16, 2017.
Mr. Bussey currently serves as the Associate Director for Derivatives Policy and Trading Risk in the SEC Division of Trading and Markets.
John C. Lawton, who served as DCR Acting Director since January 2017, will become Special Advisor to the DCR Director.
Commentary
While at the SEC, Mr. Bussey was very involved in the creation of the SEC's rulemakings governing cross-border swaps activities. The SEC's rulemaking process produced a set of rules that were much clearer in their requirements than the CFTC's guidance on the subject, which relied heavily on a "facts and circumstances" approach to jurisdiction, often with little guidance as to what circumstances were actually meaningful. Mr. Bussey's experience with cross-border rulemaking at the SEC may help the CFTC adopt clear rules and requirements in this area. Market participants should know with some certainty whether the U.S. rules do, or do not, apply to particular transactions and entities.
Mr. Giancarlo's CFTC is gaining a well-regarded and experienced regulator, and the SEC is losing the same.