At the Asian Financial Forum, CFTC Chair Timothy Massad spoke about the importance of creating a strong international regulatory framework in order to harmonize cross-border swaps.
Chair Massad explained that his goal would be to work with regulators to create a framework that provided transparency and “sensible” oversight. One way to achieve this goal, according to Chair Massad, would be to create transparency that could “encourage innovation” and lead to the development of contracts to “enable businesses to hedge different types of risk.”
Chair Massad emphasized that global regulators must commit to the implementation of harmonized reforms rather than merely agree that reforms should be undertaken. Chair Massad reiterated his commitment to working with regulators to build a strong and harmonized cross-border framework.
Lofchie Comment: Commissioner Massad deserves credit for encouraging world regulators to work to build a strong and harmonized cross-border framework. He would deserve even more credit if he sought to harmonize the CFTC’s “guidance” on cross-border regulation with the SEC’s rules, and more credit still, if he initiated a formal rulemaking process with respect to the CFTC’s cross-border regulation.
See: Chair Massad’s Remarks.