Office of the Chief Economist

Mission Statement

The mission of the Office of the Chief Economist (OCE) of the Commodity Futures Trading Commission (CFTC) is to conduct rigorous economic and econometric analysis of derivatives markets; to foster market transparency by disseminating its research to market participants and the general public; and to partner with other CFTC divisions and offices to integrate economic reasoning and data analysis into Commission policy and cost-benefit considerations.

A list of the current members of the Office of the Chief Economists can be found on our Biographies page, which includes backgrounds as well as research interests. The office is led by Bruce Tuckman (Chief Economist) and Scott Mixon (Supervisory Economist).

Featured Research

ENNs for Corporate and Sovereign CDS and FX Swaps (Lee Baker, Richard Haynes, Madison Lau, John Roberts, Rajiv Sharma, and Bruce Tuckman)

  • This white paper makes use of CDS and FX swap position data to calculate entity-netted notional (ENNs) equivalents for the two new asset classes. The report, like the earlier one on IRS positions, translates swap notional values into risk-based measures more easily comparable to other financial markets like corporate bonds.
  • After risk-adjusting CDS markets against a 5-year CDS benchmark contract and allowing for counterparty netting, the $5.5tn notional market falls to a $2.0tn risk-adjusted equivalent. After a similar netting exercise in FX markets, the authors calculate a reduction from $57tn of swap notional to a significantly lower $17tn ENNs level.
  • Using these risk-adjustments, the size of all three markets (IRS, FX, and CDS) falls to levels comparable to that of markets like corporate bonds ($13tn) and U.S. Treasuries ($17tn).

In addition to this new paper on credit and FX ENNs, the report on IRS ENNs as of September 2018 has been updated and expanded. The IRS report now includes histograms of long and short ENNs exposures for each major participant group as well as a few methodology improvements.

For older research projects, please visit our Research Papers website.

Information on Academic Collaboration

The Office of the Chief Economist frequently collaborates with academics on research projects focused on financial markets. Often, these projects will make use of one or more of the data sets the agency receives as part of its program of regulatory oversight and monitoring. Many papers have resulted in publications in prominent academic journals. A selection of papers from these collaborations can be found on our Research Papers page.