CFTC Open Meeting, October 26, 2010

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Dodd-Frank Timeline, Proposed Rule Regarding Prohibition of Market Manipulation
Proposal Date Final Rule Effective Date
November 3, 2010 July 14, 2011 August 15, 2011
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, Process for Review of Swaps for Mandatory Clearing
Final Rule Issue Effective Date Compliance Date
November 2, 2010 September 26, 2011 September 26, 2011
Dodd-Frank Timeline, Investment of Customer Funds
Final Rule Issue Effective Date Compliance Deadline
December 19, 2011 February 17, 2012 June 18, 2012
Dodd-Frank Timeline-Provisions Common to Registered Entities
Proposal Date Final Rule Issue Effective/Compliance Date
November 2, 2010 July 27, 2011 September 26, 2011
Dodd-Frank Timeline-Removing References to Credit from Commission Regulations
Proposal Date Final Rule Issue Effective/Compliance Date
November 2, 2010 July 25, 2011 September 23, 2011

The Commodity Futures Trading Commission (CFTC) held a public meeting on October 19, 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]

  • Certification and approval of rules and new products for designated contract markets, derivatives clearing organizations, swap execution facilities and swap data repositories;
  • Removing any reliance on credit ratings in Commission regulations;
  • Amending CFTC Regulations 1.25 and 30.7 to provide greater protections for customer funds held by futures commission merchants (FCMs) and derivatives clearing organizations;
  • Process review and the designation of swaps for mandatory clearing;
  • Enhancing the Commission’s ability to protect against manipulation; and
  • An advance notice of proposed rulemaking on disruptive trading practices.

Archived webcast:

Meeting Summary

Related Documents

Prohibition of Market Manipulation

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Disruptive Trading Practices

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Removing Reliance on Credit Ratings

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Review Process of Swaps for Mandatory Clearing

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Regulations 1.25 and 30.7: Protections of Customer Funds

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Provisions Common to Registered Entities ("Part 40")

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Speakers

Chairman Gary Gensler; whose statements include:

  • Support for the proposed rulemaking to enhance the Commission’s ability to protect against manipulation.
  • Support for the proposed Advanced Notice of Proposed Rulemaking concerning disruptive trading practices.
  • Support for the proposal to remove any reliance on credit ratings within the Commission’s regulations.
  • Support for the day’s Commission vote on the proposed rulemaking regarding the investment of customer segregated and secured amount funds.
  • Support for the proposed rulemaking to establish a process for the review and designation of swaps for mandatory clearing.
  • Support for the proposal to publish for comment the proposed rule on the Commission’s process for certification and approval of rules and new products for designated contract markets (DCMs), derivatives clearing organizations (DCOs), swap execution facilities (SEFs) and swap data repositories (SDRs).

Commissioner Michael V. Dunn; whose statements include:

  • Without the necessary human capital to review new SEF, DCM and DCO applications, he envisions long waiting periods for potential registrants before their applications are approved to conduct business in the markets the commission regulates.
  • The lack of adequate resources would undoubtedly affect the agency’s ability to approve new products for trading.
  • Without adequate funding, the CFTC may need to delegate a substantial portion of its duties under Dodd-Frank to the industry’s established SROs.
  • A principles-based regulatory regime only works if the regulator has the staff necessary to ensure that its regulatees are adhering to the principals.

Commissioner Bart Chilton; whose statements include:

  • Comments on the precious metals markets and in particular the silver markets.
  • There have been repeated attempts to influence prices in the silver markets.

Commissioner Scott O’Malia; whose statements include:

  • Concern that the Commission is proposing to significantly revise the scope and character of the types of permitted investments of customer funds in the face of numerous public comments to the contrary.
  • The need for the Commission to receive more feedback from the public to better refine these definitions and to better understand how they might impact markets and the market "players"

References

  1. Open Meeting on Third Series of Proposed Rules under the Dodd-Frank Act. CFTC. Retrieved on March 4, 2011.

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