Faced with criticism from firms such as Citadel Securities and Goldman Sachs, a Republican regulator plans to withdraw a revamp of rules for products used to hedge risks and make bets on everything from fuel prices to interest rates.

Commodity Futures Trading Commission Chairman J. Christopher Giancarlo, a former executive at a swaps brokerage, plans to abandon an existing proposal on swap trading and rewrite it after incorporating industry feedback, he said in an interview. Since 2014, most swaps have been required to trade on platforms called swap execution facilities, whose construction Giancarlo has harshly criticised.