By Sarah N. Lynch Of DOW JONES NEWSWIRES WASHINGTON -(Dow Jones)- U.S. Commodity Futures Trading Commissioner Bart Chilton dissented Friday from his agency's pledge to work with the U.S. Federal Reserve and the Securities and Exchange Commission to cooperate on overseeing credit-default swaps.
Chilton's dissent came in response to a memorandum of understanding that was released by the three agencies early Friday to cooperate in overseeing the clearing platforms that are currently being developed in the private sector for credit-default swaps.
The document was an effort to head off a brewing turf war between the three agencies over the credit derivatives market. Each agency is currently reviewing rival applications from different groups seeking to clear CDS, and the memorandum announced Friday reiterated efforts to improve oversight and transparency.
"While I generally support the sharing of information between federal financial regulators, as appropriate, I dissent from the signing of the above-referenced MOU," Chilton said, referring to the memorandum of understanding. "Specifically, I voice significant reservations regarding the implicit message this action may send to the marketplace."
Chilton stressed that the CFTC is the only agency of the three that has experience in regulating swap products.
"I am concerned that, by our approval of this action, we are sending the message that other regulatory bodies have the same or similar levels of expertise in this area," he said. "That is simply not the case."
Walter Lukken, the acting chairman of the CFTC, said earlier this week that he expects one or two CDS clearing services will be approved "in weeks."
The memorandum of understanding released by the three agencies, while supporting cooperation, stopped short of giving any single agency control.
-By Sarah N. Lynch, Dow Jones Newswires; 202-862-6634; sarah.lynch@dowjones.com
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(END) Dow Jones Newswires
November 14, 2008 18:01 ET (23:01 GMT)

Publié le 15 novembre 2008 Copyright © 2008 Dowjones