Treasury’s Clearing Agenda Presages Structural Change
Later today, we will provide clients with an in-depth analysis of CFTC Chairman Giancarlo’s testimony before the House Agriculture Committee on his agency’s agenda. Much of this is shaped by the Trump Administration’s report on capital-markets regulation and this report thus analyzes its recommendations related to derivatives trading and risk management in detail. A FedFin report yesterday (see Client Report FMU14) also addresses critical Treasury recommendations addressing derivatives clearing which are also high on CFTC’s agenda. As we noted Friday, SEC-CFTC consolidation is not recommended – a contrast to the last-time Treasury attempted a regulatory blueprint shortly before the 2008 crisis overtook all such efforts (see Client Report CHARTER16).