MFA Blog

CFTC Chair Gary Gensler Discusses Swap Execution Facilities

Posted on October 21, 2013

In a recent interview with the Washington Post, Commodity Futures Trading Commission (CFTC) Chair Gary Gensler discussed the new swap execution facilities (SEFs) that launched earlier this month.  Chairman Gensler noted the increased transparency that the SEFs offer to the swaps market, as well as the early performance of the SEFs.

“Though the CFTC was in darkness due to the shutdown, we actually were able to bring some light to the swaps markets,” he said.  “The first day of platform trading, there were about 1,200 transactions on these platforms.  It’s grown, and late last week it was around 2,000 transactions a day.”

Chairman Gensler noted that transparency of the derivatives market has included four steps, including price, volume, and key terms reporting; transparency to regulators with data repositories; value of long-term trades; and SEFs and other exchanges.  He acknowledged there being some risk with SEFs, but he does not believe they pose a large risk to the public.

Cross-border derivatives issues were also discussed, with Chairman Gensler noting that U.S. regulators continue to work with other global regulators toward comparable reforms.  “If there’s comparable reform in their jurisdictions then we could defer to those reforms,” he said.

Read the entire interview online from the Washington Post.