CFTC Staff to Host Public Roundtable to Discuss the "Futurization" of Swaps (with Lofchie Comment)

The CFTC announced that staff will hold a public roundtable on January 31, 2013, from 9:30 a.m. to 3:15 p.m., to discuss the #8220;futurization#8221; of the swaps market. The roundtable will consist of four panels, discussing 1) general industry views and concerns regarding the conversion of swaps to futures in each asset class; 2) clearing and different margin requirements for swaps and futures; 3) transaction-related matters, including appropriate block rules for swaps and futures; and 4) the effect of the conversion of swaps to futures on end-users.

Agenda for the Public Roundtable Discussion:

Lofchie Comment: This could be an interesting conference to follow. To my eye, in all kinds of ways, the heavy burden of regulation on swaps imposed by Dodd-Frank and by the implementation of the rules thereunder is driving market participants away from swaps and (to some extent) into futures. From the standpoint of the U.S. economy, what is more worrisome is that the U.S. regulations are also driving non-U.S. customers away from U.S. swaps and U.S. markets and into non-U.S. swaps and other financial markets. Swaps customers outside the United States are saying they do not want to be subject to U.S. jurisdiction. For an economy such as ours that benefits from being a locus of global financial activity, this is a bad thing.

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