Speaking before the Futures Industry Association in Japan, CFTC Chair Massad reiterated various cross-border initiatives that he had discussed in a previous speech in Hong Kong.
Chair Massad identified the clearinghouse initiative as important, explaining that, as regulators require more firms to engage in clearing financial products, steps must be taken to ensure that clearinghouses do not pose a systemic risk.
According to Chair Massad, regulators should not require all swaps to be cleared and, therefore, should set margin requirements for certain uncleared swaps. He stated that he is pleased about the recently proposed rules regarding margin rules from regulators in Europe and Japan, and commented that they are “substantially similar and reflect internationally agreed standards.”
Chair Massad explained further that cybersecurity is “the single most important new risk to financial stability.” He called on G-20 countries to prioritize cybersecurity in similar ways to those of the CFTC, which include requiring clearinghouses, exchanges and other market infrastructures to implement safeguards, as well as focusing on this issue in CFTC examinations.
See: Chair Massad’s Speech.
Related news: CFTC Chair Massad Discusses Cross-Border Harmonization (January 21, 2015); Chair Massad Announces Trip to Asia to Discuss Swaps Market Reform (January 14, 2015).