Micah Green, a partner at Steptoe and Johnson, addresses the future of Swap Execution Facilities (SEFs) now that Christopher Giancarlo is the chairman of the US Commodity Futures Trading Commission.
Green points out that Giancarlo was working in the financial services industry during the initial roll out of Dodd-Frank and the SEF rules that were implemented as a result of this legislation.
“I think it became clear to him, and I think it’s reflected in his white paper on swap execution rules, that the SEF rules that were adopted in a relative rush post-Dodd-Frank missed the mark from his perspective as to what the statute required,” says Green, who adds that CFTC staff are beginning to draft now swap execution rules as a result.
He adds that any new proposed rules will reflect Giancarlo’s view on what the statute is trying to achieve.
“[Giancarlo] has publically not quarreled with the overall goals of the statue, what he quarreled with is how the rules interpreted the statute and I think you will see action on that,” says Green.
You can watch the full interview, in which Green discusses the broader regulatory environment in Washington, here: