Giancarlo urges regulators to examine risk from capital rules

CFTC commissioner says regulators cannot avoid the issue of whether capital removed from markets harms the global system

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Christopher Giancarlo: "…markets in which few are able to take risks are markets that are very risky"

Christopher Giancarlo, commissioner of the Commodity Futures Trading Commission, is urging his US regulatory colleagues and overseas counterparts to conduct an impartial examination into whether the capital constraints they have placed on banks are damaging markets instead of aiding them. Following last week's ‘flash crash' of sterling, the world's fourth most-traded currency, Giancarlo said bank regulators can no longer skirt around the issue. "We can no longer continue to avoid the qu