CFTC in Disarray After Gensler's Crusade on Swaps Rules

During his six years as a federal regulator, Bart Chilton has become known as much for the amount of time he spends working from his home in Arkansas as for his shock of shoulder-length blond hair. Yet on the night of July 10, and again on July 11, Chilton slept on the couch in his office on the ninth floor of the Commodity Futures Trading Commission’s Washington headquarters as he and CFTC staff rushed to complete new rules governing the world’s $633 trillion swaps market ahead of a July 12 deadline.

The process had hit snags over previous weeks, including CFTC Chairman Gary Gensler’s clash with European regulators over applying the rules to U.S. financial operations based overseas. Finally, Gensler relented, agreeing to give the European affiliates of U.S. banks an exemption until Dec. 21 while negotiations with European regulators continue, and the path was cleared for approval.