CFTC Chairman Says “More Work to Be Done” in OTC Reform

October 12th, 2015

CFTC Chairman Says “More Work to Be Done” in OTC Reform 

At the Annual Over the Counter (OTC) Derivatives Summit this year, Commodity Futures Trading Commission (CFTC) Chairman Timothy Massad delivered remarks on the state of the derivatives marketplace. Massad reflected on the successful reforms implemented by the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), but said “there’s more work to be done.

Accordingly, the agency will focus on clearinghouse resiliency, the supplementary leverage ratio (SLR), margin for uncleared swaps, trading and reporting issues in its supervisory and regulatory efforts in 2015 and 2016.  Massad said “recovery and resolution planning for clearinghouses are at the top of our agenda.”  He also addressed the appropriateness of how exposure is measured under the SLR calculation.  The CFTC recently proposed a rule that requires swap dealers to publish and collect margin on uncleared swaps; Massad called the proposed rule “critical.”  The agency will also look to harmonize and standardize reporting requirements, specifically for cleared swaps.


Chairman Massad’s Remarks: