Commissioner J. Christopher Giancarlo of the Commodity Futures Trading Commission said there has been little, if any, progress by the CFTC to improve swaps trading since he issued a white paper in January 2015 that severely criticized the Commission’s swaps trading rules and proposed an alternative framework that he claimed more accurately reflected congressional intent. According to Mr. Giancarlo, when Congress enacted the Dodd-Frank Wall Street Reform and Consumer Protection Act in 2010, it did not prescribe specific execution methods for cleared swaps. Instead, it “expressly permitted [swap execution facilities] to offer various flexible execution methods for swaps transactions using ‘any means of interstate commerce.’” Subsequently enacted CFTC rules, which dictate that swaps be executed solely through a central order book or a request for quote, are therefore not mandated by statute, and are inconsistent with the fundamental nature of swaps as opposed to futures, claimed Mr. Giancarlo. Mr. Giancarlo found scant progress to date with his many recommendations, and argued that if future progress was not made “swaps trading and liquidity will continue to suffer and Congress’s goal of promoting swaps trading on platforms and pre-trade price transparency will not be realized.” (Click here for additional background on Mr. Giancarlo’s white paper in the article “CFTC Commissioner Laments Flawed US Swaps Trading Model” in the February 1, 2015 edition of Bridging the Week.)