CFTC Open Meeting, October 1, 2010

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Dodd-Frank Timeline, Interim Final Rule - Post-enactment Swap Reporting and Recordkeeping
Proposal Date Effective Date Comment Deadline
December 17, 2010 December 17, 2010 January 18, 2011
Dodd-Frank Timeline, Financial Resources Requirements for Derivatives Clearing Organizations
Proposal Date Final Rule Issue Effective Date
December 13, 2010 October 18, 2011 January 9, 2012
Dodd-Frank Timeline, DCO, DCM, SEF Governance and Conflict of Interest Requirements
Proposal Date Comment Deadline Final Rule Issue
October 14, 2010 June 3, 2011 First Qtr. 2012

The Commodity Futures Trading Commission (CFTC) held a public meeting on Friday, October 1, 2010, at 9:30 a.m. to consider the issuance of proposed rulemakings under the Dodd-Frank Wall Street Reform and Consumer Protection Act on the following topics:[1]

  • An interim final rule relating to the time frame for reporting pre-enactment unexpired swaps to a swap data repository or to the CFTC;
  • Proposed rules that would prescribe certain financial resource standards for derivatives clearing organizations including derivatives clearing organizations designated as systemically important by the Financial Stability Oversight Council under Title VIII of the Dodd-Frank Act; and
  • Proposed rules specifying requirements for derivatives clearing organizations, designated contract markets and swap execution facilities on governance arrangements and mitigation of conflicts of interest.

Contents

Video


Archived webcast:

Meeting Summary

  • Pre-enactment swaps interim final rule passed 5-0.
  • Proposed rule on financial resource requirements of DCOs and SIDCOs passed 5-0.
  • Proposed rule on governance and conflict of interest for swap entities passed 5-0.

Related Documents

Interim Final Rule for Pre-enactment Swap Transaction Reporting

Read final rule.png

Financial Resource Requirements for DCOs and SIDCOs

Read comment letters.png
Read proposed rule.png

DCO, DCM, SEF Governance and Conflict of Interest Requirements

Read comment letters.png
Read proposed rule.png

Speakers at the Meeting

Chairman Gary Gensler; whose statements include:

  • Support for that day's Commission vote on the Interim Final Rule.
  • Support for the notice of proposed rulemaking on financial resources for derivatives clearing organizations.
  • Support for the notice of proposed rulemaking on governance for derivatives clearing organizations (DCOs), designated contract markets (DCMs) and swap execution facilities (SEFs).

Commissioner Bart Chilton; whose statements include:

  • This is "Only the Beginning" for market regulation
  • His belief that the changes that are being made as a result of the Flash Crash are important and imperative.

Commissioner Michael V. Dunn; whose statements include:

  • His belief that the principle based regulatory regime the Commission currently adheres to works well.
  • His belief that there are several approaches this agency can take to implement Dodd-Frank and still follow the intentions of its drafters.
  • A request that the staff begin to determine what rules and regulations the CFTC can rescind as a result of the adoption of these new rules and I would encourage future CFTC Commissions to review these new Dodd-Frank rules within three years of enactment to determine if they are doing what they were designed to do.

Commissioner Scott D. O’Malia; whose statements include:

  • The main goal of the Act is to mitigate systemic risk by imposing a mandatory clearing requirement on swaps.
  • As the Commission proposes rules to implement the Act, DCOs will be required to meet more stringent capital requirements, which will be passed on to their clearing members and customers.
  • His agreement with Commission’s decision on the reporting of swaps entered into before July 21, 2010.
  • A main goal of the Act is to mitigate systemic risk in the U.S. financial system by imposing a mandatory clearing requirement on swaps.
  • A stated goal of the Act was to provide all market participants with fair, open, and non-discriminatory access to DCOs.
  • An overarching goal of the Act is the international harmonization of financial regulation.
  • His support for the Commission’s decision to require a registered entity to have its board of directors and certain other committees composed of thirty-five percent (35%) public directors.

Commissioner Jill E. Sommers; whose statements include:

  • Her opinion that the voting equity restrictions being proposed are not necessary or appropriate to mitigate the perceived conflicts and in fact, may do more harm than good to the emerging marketplace for trading and clearing swaps.
  • Her concerns that the proposed limitations on voting equity, especially those proposed for enumerated entities in the aggregate with respect to DCOs, may stifle competition by preventing new DCMs, DCOs and SEFs that trade or clear swaps from being formed.

References

  1. Open Meeting on First Series of Proposed Rules under the Dodd-Frank Act. CFTC. Retrieved on March 2, 2011.

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