As part of the continuing debate over the "name give up" rule for SEF trading, CFTC Commissioner Christopher Giancarlo has come out to favor a market driven solution that favors the interests of traditional market participants over the complaints of newer players.
At issue is a requirement that customers disclose their identities when they buy and sell derivatives on some swap-execution facilities. D.E. Shaw & Co. and Citadel LLC want the Commodity Futures Trading Commission to end the practice, which they say gives banks access to proprietary-investing strategies and discourages trading. In an interview, Republican CFTC Commissioner J. Christopher Giancarlo said he wants the industry to work out a solution on its own because new policies may hurt the market. “Government action could have an adverse impact on liquidity whereas a natural evolution in the marketplace will be driven by the liquidity demands of the market,” Giancarlo, a former swaps-brokerage executive, said last week. “What I favor is voluntary action that doesn’t cause any jolts to liquidity.”