FOR IMMEDIATE RELEASE
Monday, November 5, 2018
Contact: Nick Jacobs, 202-618-6430 or njacobs@bettermarkets.com
Washington, D.C. – Better Markets President and CEO, Dennis Kelleher, issued the following statement on the unanimous vote by the Commodity Futures Trading Commission (CFTC) regarding the so-called de minimis swaps trading exception threshold:
“While the $8 billion swaps dealer registration threshold should have been lowered to $3 billion as adopted more than six years ago, we applaud the CFTC for its unanimous, bipartisan vote today to not deregulate the swaps markets under the pretext of the de minimis exception.
“As we detailed in our comment letter, the proposed rule would have dramatically changed the swaps dealer definition, excluded cleared derivatives and hedging activities, and invited netting gamesmanship. Those proposals clearly violated the law (both the Dodd Frank Act and the Administrative Procedures Act). The result would have been significant deregulation of swaps markets for far too many derivatives transactions and entities, including some of the most dangerous Enron-like derivatives dealing.
“The CFTC today wisely chose not to ignore the lessons of the past, particularly when people are reflecting on the dark days of the 2008 crash just ten years ago, which was ignited and accelerated by unregulated derivatives. However, it is troubling that some are suggesting that they should revisit these issues and enact deregulation later. That would be a grave mistake and Better Markets will fight those proposals as it did this one.”
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Better Markets is a non-profit, non-partisan, and independent organization founded in the wake of the 2008 financial crisis to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with allies – including many in finance – to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements and more. To learn more, visit www.bettermarkets.com.
