CFTC's Giancarlo 'hopeful' on clearing approach in Fed capital rule, citing Quarles

25 July 2018 9:46pm
Christopher Giancarlo, head of the US Commodity Futures Trading Commission, expressed optimism that the US Federal Reserve would include a derivative clearing offset in upcoming reductions in bank capital requirements.

Giancarlo said he met with Fed regulatory chief Randal Quarles about two weeks ago to discuss concerns that the supplementary leverage ratio has discouraged banks from clearing derivative contracts for traders.

“Although he has a huge docket of tasks there, I think it’s something that will be on their to-do list,” the CFTC chief told the House Agriculture Committee on Wednesday. “I’m hopeful.”

Referring to Quarles, the Fed’s vice chairman of supervision, Giancarlo said: “I believe he appreciates” the issue.