Gary Gensler is the first U.S. Commodity Futures Trading Commission chairman to speak at an International Swaps and Derivatives Assocation AGM. He did not shy away from leveling blame on the industry for the 2008 crisis and ISDA itself for trying to delay the CFTCs rule writing.
So, attendees got to witness a robust exchange of views as Gensler sat down with ISDA Chairman Stephen OConnor for a question-and-answer session. Here are some of the highlights:
GG: For those of you not as close to this, about six months ago we finalized clearing rules that are required for gross margining the clearing houses and subsequently in January we finalized something called legally segregated operationally comingled, or what Steve calls LSOC rules. Both of these...
SO: I think most of them have an idea of what that is.
Stephen O'Connor and Gary Gensler
GG: I cant [comment] on your comment letter. Youve sent so many eloquent ones.
SO: Thank you. Theyre not all me.
GG:I thought Steve wrote all of these.
[After OConnor asks Gensler to clarify an answer twice]
GG: I might not have a satisfactory answer for what youre probing. But you can probe a fourth time. Thats how it usually goes.
SO: Yes, lets move on.
GG: Its always the lawsuits later.
SO: We are an international organization, as you know...
GG: Its the I, right?