CFTC Derivatives Rules Can Be Challenged by Industry
By Aline van Duyn
November 18 (The Financial Times)
Derivatives industry participants will be able to ask the the Commodity Futures Trading Commission (CFTC) to change new regulations after they are written, said Michael Dunn, one of five CFTC commissioners, on Wednesday.
Mr Dunn said that there could be “unintended consequences” of the dozens of new rules that regulators have to write by July of next year to comply with the Dodd-Frank financial reform legislation. He said, however, that market participants had the right to petition for changes to regulations, even though it was a right that was rarely used.
“Tell us when we’ve made a mistake,” he urged a group of derivatives market participants attending a conference organized by the Depository Trust and Clearing Corp (DTCC). Mr Dunn said there had only ever been one petition made to change a CFTC regulation, which has historically covered the commodity markets and exchange-traded futures, and he said industry participants should make better use of this right.
Mr Dunn said the CFTC and the Securities and Exchange Commission (SEC) had a hard task ahead in the coming months to comply with the Dodd-Frank timetable, which requires more than 100 new rules to be written to regulate the vast over-the-counter (OTC) derivatives and swaps markets.
The commissioner, who together with other commissioners votes to approve any new regulations, said the process could be complicated by a “turf battle” between the two regulators.
The regulators plan to put forward key rules defining what entities will be regulated on December 1, and after that will put forward rules about what products will be regulated. It is in these product definitions that “turf battles” might come to the fore, Mr Dunn said.
Rules relating to swap data repositories, real-time public reporting of swap transaction data and data record keeping will be unveiled on November 19 at a public meeting at the CFTC in Washington.
November 18 (The Financial Times)
Derivatives industry participants will be able to ask the the Commodity Futures Trading Commission (CFTC) to change new regulations after they are written, said Michael Dunn, one of five CFTC commissioners, on Wednesday.
Mr Dunn said that there could be “unintended consequences” of the dozens of new rules that regulators have to write by July of next year to comply with the Dodd-Frank financial reform legislation. He said, however, that market participants had the right to petition for changes to regulations, even though it was a right that was rarely used.
“Tell us when we’ve made a mistake,” he urged a group of derivatives market participants attending a conference organized by the Depository Trust and Clearing Corp (DTCC). Mr Dunn said there had only ever been one petition made to change a CFTC regulation, which has historically covered the commodity markets and exchange-traded futures, and he said industry participants should make better use of this right.
Mr Dunn said the CFTC and the Securities and Exchange Commission (SEC) had a hard task ahead in the coming months to comply with the Dodd-Frank timetable, which requires more than 100 new rules to be written to regulate the vast over-the-counter (OTC) derivatives and swaps markets.
The commissioner, who together with other commissioners votes to approve any new regulations, said the process could be complicated by a “turf battle” between the two regulators.
The regulators plan to put forward key rules defining what entities will be regulated on December 1, and after that will put forward rules about what products will be regulated. It is in these product definitions that “turf battles” might come to the fore, Mr Dunn said.
Rules relating to swap data repositories, real-time public reporting of swap transaction data and data record keeping will be unveiled on November 19 at a public meeting at the CFTC in Washington.
