J. Christopher Giancarlo, a leading candidate to head the U.S.Commodity Futures Trading Commission under President-electDonald Trump, called for an overhaul of swaps-trading regulationsthat he blamed for fracturing global markets.

Giancarlo, currently a Republican member of the CFTC, said in aspeech in London Friday that Dodd-Frank Act rules have “causednumerous harms” to the $544 trillion worldwide market by drivingtrading away from banks and other firms that fall under U.S.oversight. He said overseas traders have shunned deals withfinancial firms that bear the “scarlet letters” of U.S. rules,contributing to less efficient and more volatile prices in themarket.

“The time has come for the CFTC to revisit its flawed swapstrading rules to better align them to market dynamics, allow U.S.swap intermediaries to fairly compete in world markets and reversethe tide of global market fragmentation,” Giancarlo, a formerswap-brokerage executive, said at an International Swaps andDerivatives Association conference.