Gensler defends swaps rules shake-up Leading US markets regulator Gary Gensler used his last speech to an annual conference of interdealer brokers to defend his agency's controversial swaps rules. Mr Gensler is stepping down as chairman of the Commodity Futures Trading Commission in early January but was speaking on Monday at the Sefcon conference organised by the Wholesale Markets Brokers" Association Americas. He has ploughed through 67 rule proposals mandated by the Dodd-Frank legislation, some of which have drawn criticisms from market participants, overseas regulators and lawmakers. The latest dispute comes from guidance that the CFTC issued last week in which the agency emphasised that all types of investors from banks, hedge funds, alternative market makers and institutional clients can trade with each other on so-called Swap Execution Facilities. That means interdealer brokers, some of whom were surprised by the move, must open up their trading platforms beyond the small club of powerful dealers who dominate the so-called interdealer market. Mr Gensler said not allowing broad access would lead to a compliance violation. "This does mean a paradigm shift from the business models of the past," Mr Gensler said at the WMBA conference, whose members are the main interdealer brokers including BGC, GFI, ICAP, Tradition and Tullett Prebon. Bringing access to the entire marketplace means platforms will no longer be just dealer-to-dealer or dealer-to-customer. Before Mr Gensler spoke, Chris Ferreri, head of e-commerce at ICAP, also brought up other CFTC rules that have stirred controversy. One example is the reach of the CFTC, which says that any platform, including those based overseas, must follow the US rules if it trades with a US counterparty. Critics said that could mean US banks will be kicked off platforms based in London. "As an industry, we are all working through confusing, and sometimes conflicting parts of the rules," Mr Ferreri said in a speech. Bringing access to the entire marketplace means platforms will no longer be just dealer-to-dealer or dealer-to-customer Gary Gensler, chairman of the Commodity Futures Trading Commission Mr Gensler said all of the swaps rules are aimed at emphasising transparency, open access and a level playing field, which it was required to do under the law. "Bright lights now are shining on the swaps market," he said. Transparency is shining both prior to and after a trade. Although Mr Gensler has less than two months left in his tenure, he will be working until the end. He said the agency is likely to seek public comment next month on a block trading rule that sets a minimum size for privately negotiated futures deals. Commissioners will get a text of the controversial Volcker rule, which bans proprietary trading, on Tuesday. Mr Gensler said he hopes that the CFTC will be able to hold a public hearing on the Volcker rule in December, but added that regulators are still working on the proposal. The agency will also consider compliance proposals from at least two regions that were given more time to conform with swaps reforms. The six regions that were given more time were Australia, Canada, the European Union, Hong Kong, Japan and Switzerland.