CFTC Open Meeting, February 24, 2011

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Dodd-Frank Timeline, Amendments to Commodity Pool Operator Regulation
Proposal Date Final Rule Issue Effective Date
March 3, 2011 September 5, 2012 November 5 2012
Timeline, Interpretive Guidance on Disruptive Practices
Proposal Date Comment Deadline Final Rule Issue
March 18, 2011 May 17, 2011 May 16, 2013
Dodd-Frank Timeline, Proposed Rule on Registration of Intermediaries
Proposal Date Final Rule Issue Effective Date
March 9, 2011 August 28, 2012 October 29, 2012
Dodd-Frank Timeline, Requirements for Processing, Clearing, and Transfer of Customer Positions
Proposal Date Final Rule Issue Effective Date
December 13, 2010 October 18, 2011 January 9, 2012

Open Meeting on Twelfth Series of Proposed Rules under the Dodd-Frank Act
Link to archive webcast:

The Commodity Futures Trading Commission (CFTC) public meeting focused on the issuance of proposed rules under the Dodd-Frank Wall Street Reform and Consumer Protection Act on the following topics:[1]

An additional agenda item, regarding swap data recordkeeping and reporting requirements for pre-enactment and transition swaps, was tabled until the next meeting.

Meeting Summary

Disruptive Trading Practices: Proposal passed 4-1, with Commissioner Sommers voting against, for reasons cited in her statement below. It is important to note that the commission opted to issue a proposed interpretive order on disruptive practices, instead of a proposed rule. The proposal appeared in the Federal Register on March 18, 2011. The deadline for comments will be May 17, 2011
Conforming Amendments for Part 3 (Registration of Intermediaries) and Part 4 (CPOs and CTAs): Both proposals passed 5-0, and a 60-day comment period will follow the proposals' appearance in the Federal Register.
Processing, Clearing and Transfer of Customer Positions: Proposal approved 5-0. After appearing in the Federal Register, the comment period will remain open for 30 days.

Related Documents

Disruptive Trading Practices:

Read comment letters.png
Read order.png

CPO/CTA Conforming Amendments

Read comment letters.png
Read proposed rule.png


Registration of Intermediaries Conforming Amendment

Read comment letters.png
Read proposed rule.png

Requirements for Processing, Clearing, and Transfer of Customer Positions

Read comment letters.png
Read proposed rule.png

Speakers

Chairman Gary Gensler; whose statements include:

  • Postponement of a rule proposal, originally schedule for the meeting, relating to swap data recordkeeping and reporting requirements for pre-enactment and transition swaps.
  • Commission moving through the rule proposal phase and toward final rulemaking phase.
  • Support for all of the meeting's proposals.

Commissioner Michael V. Dunn, whose statements include:

  • Reiterated concern about funding, in light of additional oversight responsibilities. "The Commission is faced with very hard choices as to how to use our limited resources to enforce both Dodd-Frank and the Commodity Exchange Act."
  • Regarding the disruptive trade practices proposal, believes it addresses concern from prior public commenters' desire for "greater clarity to help them understand how we interpret the concept of a “disruptive practice."

Commissioner Bart Chilton, whose statements included:

  • Support for the disruptive trading proposal, but believes commission needs to go further, specifically: program testing to ensure that they work properly;market parameters (like limit up and limit down rules); in-house supervisory pre-trade prudential parameters to ensure that high frequency traders "play by the rules".
  • Called the funding shortfall, and the threat from the House of Representatives to cut CFTC budget by a third, "risky business for consumers, market participants, and ultimately our national economy".

Commissioner Jill Sommers; whose statements include:

  • Desire for cost/benefit analysis in rule proposals, stating, "we owe the American public more than the absolute minimum. As we add layer upon layer of rules, regulations, restrictions and new duties, we should be attempting to quantify the costs of what we are proposing."
  • Opposition to the disruptive trade proposal, stating, "the disruptive trading practices statutory language is vague, and this proposal does not cure that vagueness."

Commissioner Scott O’Malia; whose statements include:

  • Regarding the disruptive trade proposal, "after one round of comments and a roundtable, we have taken the middle ground and are issuing a proposed interpretive order to provide guidance..."
  • Regarding the processing, clearing and transfer requirements proposal, O'Malia expressed concern about the overlap of this proposal and DCO Core Principle F.

References

  1. Open Meeting on Twelfth Series of Proposed Rules under the Dodd-Frank Act. CFTC. Retrieved on February 26, 2011.

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