On April 26, 2018, Commodity Futures Trading Commission (CFTC) Chairman J. Christopher Giancarlo published a white paper entitled “Swaps Regulation Version 2.0: An Assessment of the Current Implementation of Reform and Proposals for Next Steps,” co-authored with CFTC Chief Economist Bruce Tuckman. The white paper was released just after the Chairman completed a “fireside chat” discussion with Scott O’Malia, chief executive officer of the International Swaps and Derivatives Association (ISDA), during the ISDA Annual General Meeting (ISDA AGM). Discussing the white paper during the fireside chat, the Chairman noted that it is essentially an assessment of what’s working and what’s not from the CFTC’s perspective with regard to its implementation of Title VII of the Dodd-Frank Act of 2010 (Dodd-Frank).1 The Chairman also likened the reference to “Version 2.0” in the white paper’s title to an updated version of software – which seeks to improve and build on an existing base platform. Accordingly, the white paper reflects the Chairman’s ambitious agenda to begin making what he sees as necessary improvements to the regulatory structure the CFTC put in place with respect to swaps in the wake of the adoption of Dodd-Frank. The white paper is an important document that sets forth the framework under which the CFTC will pursue its coming refresh of the swaps rules.
The white paper addresses five areas:
- swaps central counterparties
- swaps reporting
- swaps execution
- swap dealer capital
- the commercial end user clearing exception
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