CFTC Open Meeting, November 10, 2010

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Dodd-Frank Timeline, Required Compliance Policies
Final Rule Issue Effective Date Compliance Date, Non-Covered Firms Compliance Date, Covered Firms
April 3, 2012 June 4, 2012 September 30, 2012 March 31, 2013
Dodd-Frank Timeline, Conflicts of Interest for Swap Entities, FCMs, IBs
Final Rule Issue Effective Date Compliance Date
April 3, 2012 August 3, 2012 October 12, 2012
Dodd-Frank Timeline, Duties for Swap Dealers and Major Swap Participants
Final Rule Issue Effective Date Compliance Date
April 3, 2012 June 4, 2012 October 12, 2012
Dodd-Frank Timeline, Registration of Foreign Boards of Trade
Final Rule Issue Effective Date Compliance Date
December 23, 2011 February 21, 2012 August 20, 2012
Dodd-Frank Timeline, Registration of Swap Dealers and Major Swap Participants
Final Rule Issue Effective Date Compliance Date - Swap Dealers Compliance Date - Major Swap Participants
January 19, 2012 March 19, 2012 January 1, 2013 October 12, 2012
Dodd-Frank Timeline, Whistleblower Provisions, CFTC
Proposal Date Final Rule Issue Effective Date
December 6, 2010 August 4, 2011 October 24, 2011

On November 10, 2010, the Commodity Futures Trading Commission (CFTC) held the fourth in its series of open meeting to consider issuance of proposed rulemakings under the Dodd-Frank Wall Street Reform and Consumer Protection Act. Rule proposals considered at the meeting:[1]

  • Registration of Foreign Boards of Trade;
  • Registration of swap dealers and major swap participants;
  • Implementation of new whistleblower provisions of the Commodity Exchange Act;
  • Risk management policies of swap dealers and major swap participants;
  • Two rules concerning firewalls and conflict-of-interest policies and procedures by swap dealers, futures commission merchants and other intermediaries; and
  • Designation of a chief compliance officer and related compliance policies of swap dealers, major swap participants and futures commission merchants.

Archived webcast:

Contents

Meeting Summary

  • Registration of Swap Dealers and Major Swaps Participants proposal passed 5-0.
  • After considerable procedural discussion about the Firewalls and Conflict-of-interest Policies regarding commissioners' posing of questions between the meeting and the posting in the Federal Register, specifically about amending the language about futures commission merchant firewalls, votes were taken on firewall rules. The Swap Dealer Firewall proposal passed 5-0. The proposal as it relates to FCMs passed 4-1, with Commissioner Sommers voting against.
  • The Chief Compliance Officer and Related Compliance Policies proposals passed 4-1, with Commissioner Sommers voting against.
  • The Whistleblower proposal passed 5-0.
  • Foreign Boards of Trade proposal passed 3-2, with Commissioners Sommers and O'Malia voting against, and Commissioner Chilton a "reluctant yes."

Related Documents

Designation of CCO and Annual Compliance Report

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Conflicts of Interest Proposal

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Duties of Swap Dealers and Major Swap Participants

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Read proposed rule.png

Registration of Foreign Boards of Trade

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Read proposed rule.png

Registration Process for Swap Entities

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Read proposed rule.png

Whistleblower Incentives and Protection

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Read proposed rule.png

Speakers

Chairman Gary Gensler; whose statements include:

  • Support for the proposed rulemaking to establish a program for whistleblowers as mandated by the Dodd-Frank Act.
  • Support for the proposed rulemaking to establish a process for the registration of swap dealers and major swap participants.
  • Support for the proposed rulemaking to implement a registration system for Foreign Boards of Trade (FBOTs) seeking to offer market participants in the United States direct access to the FBOTs’ trading systems.
  • Support for the proposed business conduct standards rulemaking that establishes risk management policies for swap dealers and major swap participants.
  • Support for the proposed rulemakings that establish firewalls to ensure a separation between the research arm, the trading arm and the clearing activities of swap dealers, major swap participants, futures commission merchants and introducing brokers.
  • Support for the proposed rulemaking establishing requirements for the designation, qualifications and duties of a chief compliance officer of swap dealers, major swap participants and futures commission merchants.

Commissioner Michael Dunn; whose statements include:

  • Support for all of the day's rule proposals, but a reservation of judgment regarding the final rules until public comments have been considered
  • Need for timeliness in the "definitions" proposals, scheduled for the December 1, 2010 meeting.
  • Concern that a "lack of budgetary resources will lead to more prescriptive rules that include greater financial and regulatory burdens and force the CFTC to move more methodically to register new participants and approve new products."

Commissioner Jill Sommers; whose statements include:

  • Concern that the tight timeline for proposal and adoption of rules, some before the "definitions" phase, amounts to "putting the cart before the horse."
  • Anticipation of negative consequences of a continuing resolution in 2011.
  • Congressional intent of the Dodd-Frank Act is "not always obvious". The commission should be concentrating on areas where the act is clear, and not "promulgate regulations." For this reason, Sommers opposed the day's proposals.

Commissioner Bart Chilton, present through a remote link

Commissioner Scott O’Malia; whose statements include:

  • The Commission must immediately produce the critical definitions that define swap market participants.
  • He recommends that the commission conduct a staff roundtable on the “capital and margin” issue prior to the release of a proposed rulemaking.
  • His opinion that the commission should vote on the real-time reporting rule proposal concurrently with the “swap execution facility” definition.
  • His preference that all of the rules related to clearing be considered together during one Commission rulemaking meeting.

References

  1. Open Meeting on Fourth Series of Proposed Rules under the Dodd-Frank Act. CFTC. Retrieved on March 7, 2011.

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