CFTC Commissioner O'Malia on a Raft of Issues

CFTC Commissioner Scott O'Malia delivered a speech criticizing much of the CFTC's rulemaking and activities, including in the areas of swap data reporting, futurization, SEFs, position limits rule and cross-border guidance.

As to swap data reporting, he indicated that the CFTC was not able to use much of the information that it required to be delivered. He said that futurization was largely a product of rules that irrationally favored futures over swaps, with resulting damage to commercial companies that wanted to use swaps to hedge. He said that he was eager to have SEF Rules. As to position limits, he said that the CFTC should try to determine whether the limits make sense rather than having a court fight over whether the CFTC is authorized to adopt position limits without regard to their justification. On the cross-border front, he indicated that there had been progress made in the CFTC's discussions with non-U.S. regulators.

View speech in full here (links externally to CFTC website).