Gensler: Curb Overseas Swaps

CFTC chair says JP Morgan’s losses show swap regs should be extended.

Derivatives losses of at least $2 billion at JPMorgan Chase & Co. show the need for extending Dodd-Frank Act swap regulations to overseas trades, said Gary Gensler, chairman of the U.S. Commodity Futures Trading Commission.

“We’ve had another stark reminder of how trades overseas can quickly reverberate with losses coming back to the United States,” Gensler said today in a speech at a Financial Industry Regulatory Authority conference in Washington. “The bank here in the U.S. is absorbing these losses” on trades conducted at JPMorgan in London, he said.

Extent of Guidelines

Under the guidelines, Dodd-Frank clearing and collateral rules may not apply to trades between overseas affiliates of U.S. firms and foreign-based companies that don’t have a guarantee from another U.S. company, Gensler said.

Page 1 of 2

Copyright 2016 Bloomberg. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.


Advertisement. Closing in 15 seconds.