Q&A – CFTC's Scott O'Malia

CFTC Commissioner Scott O’Malia shares his views with Ned Molloy on, amongst other things, systemic risk, position limits, the use of non-cash collateral and the jurisdictions of the CFTC and FERC

Q. A lot of energy companies and traders argue that their activities don’t pose a systemic risk to the rest of the financial system, so they shouldn’t be caught under Dodd-Frank. What’s your response?

A. Scott O'Malia: In fact, they’re right. Congress drafted that they be exempt from the clearing requirement and now we’ve had some report language and other comment from the Hill, specifically the Lincoln-Dodd letter, talking about the necessity of minimising end-users from margining uncleared