ISDA statement re: CFTC Commissioner Giancarlo’s White Paper on SEF Rules

 

ISDA statement re: CFTC Commissioner Giancarlo’s White Paper on SEF Rules

Commissioner Giancarlo’s paper is a constructive step forward in the ongoing discussion about the appropriate market structure for swaps and derivatives trading. Its proposals recognize the unique characteristics and importance of swaps, and seek to restore flexibility and choice in trade execution. The proposals would increase transparency, ensure the integrity of the swaps markets and enable derivatives users to more effectively hedge their business and financial risks.In addition, the principles-based approach to SEF rules espoused in Commissioner Giancarlo’s paper is consistent with that taken by the G-20 with regards to derivatives reform. This approach significantly advances the process of building a harmonized and consistent framework of rules for derivatives trade execution across borders, thereby avoiding market fragmentation.We remain hopeful that the Commission will revisit the SEF rules and look forward to reviewing and analyzing the paper in more detail.”

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