CFTC official advises stricter oversight of funds managing family wealth

(Reuters) The Commodity Futures Trading Commission (CFTC), the top U.S. swaps regulator, should reverse its loosening of oversight of family offices, a Democratic commissioner said on Thursday in response to the blowup of Archegos Capital.

The downfall of the family office run by former Tiger Asia manager Bill Hwang triggered billions in potential losses for global banks. Archegos, free from regulatory scrutiny, had amassed large positions in stocks, including ViacomCBS, using risky derivatives known as “total return swaps,” regulated by the U.S. Securities and Exchange Commission.

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