The Commodity Futures Trading Commission does not have the authority to establish an all-to-all swaps market in the U.S., but markets will eventually become "something that looks more like an all-to-all marketplace," CFTC member J. Christopher Giancarlo said. However, Michael O'Brien, director of global trading at Eaton Vance, said an overhaul of U.S. swaps markets that doesn't lead to all-to-all liquidity would be a failure.
The Commodity Futures Trading Commission said it will consider five final rules at its July 7 meeting. The rules include a definition of an agriculture commodity, regulations aimed at preventing market manipulation and reporting requirements for traders of physical swaps.
The Financial Stability Board recently published a report that outlines risk in the market of exchange-traded funds. The International Monetary Fund's Global Financial Stability Report also highlights ETF risk. The Bank for International Settlements also warned about systemic risk of ETFs. Participants in the ETF sector said it is likely that more regulation, particularly increased disclosure, will be enacted.