Reopening and Extension of Comment Periods for Rulemakings Implementing the Dodd-Frank Wall Street Reform and Consumer Protection Act

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At its April 27, 2011 open meeting, the CFTC approved a proposal to reopen the comment periods for 32 of its rule proposals related to the Dodd-Frank Act. According to Chairman Gensler, "With the substantial completion of the proposal phase of rule-writing, the public now has the opportunity to review the whole mosaic of rules. This will allow market participants to evaluate the entire regulatory scheme as a whole. To further facilitate this process, this morning we will consider reopening or extending the comment periods for most of our Dodd-Frank proposed rules for an additional 30 days."[1]

As an appendix to the proposal, Commissioner O'Malia submitted a statement requesting that the commission decide upon and publish its expected timeline for final rule issuance. In the statement, O'Malia suggests implementing the final rulemakings in four phases:

Phase I

  • Federal Energy Regulatory Commission (FERC) Memorandums of Understanding
  • Whistleblower
  • Fair Credit Reporting Act (FCRA) Rules
  • Reliance on Credit Ratings
  • Swap Data Repositories
    • Data Recordkeeping
    • Large Trader reporting
    • Investment advisor reporting
    • Pre-enactment & Transition swaps
    • Governance of SDRs
    • Process to define a clearable swap

Phase II

  • Swap Dealer (SD)/Major Swap Participant (MSP)
    • End-User Exemption
    • SD/MSP Registration
    • Small Bank Exemption Rule
    • Business Conduct Standards for SD/MSP (Internal business conduct; Documentation; Conflicts of Interest; Capital and Margin; External Business conduct
    • Inter-Affiliate Transactions
  • Product Rules
    • Agricultural Swaps
    • Swaps
    • Agricultural commodity definition

Phase III

  • Position Limits
  • Clearing
    • Designated Clearing Organization (DCO)
    • Core Principles
    • Systemically Important Designated
    • Clearing Organizations (SIDCOs)
    • Governance of DCO
  • Execution
    • Real-time Reporting
    • Swaps Execution Facility (SEF) & Block
    • Trade Rule
    • Designated Contract Market (DCM)
    • Foreign Board of Trade (FBOT)
    • Part 40 Rule Certification
    • Governance of SEFs & DCMs

Phase IV

  • Clearing
    • Rule 1.25
    • Segregation and Bankruptcy
    • Portfolio Margining
  • Anti-Manipulation
  • Disruptive Trading
  • Volcker Rule 619
  • Commodity Pool Operator (CPO)/Commodity Trading Adviser (CTA)
    • Registration & conduct rules
  • All Conforming Rules[2]

The entire proposal, as it appeared in the Federal Register on May 4th, 2011, can be found below.


References

  1. Opening Statement, Meeting of the Commodity Futures Trading Commission, Chairman Gary Gensler. CFTC. Retrieved on May 6, 2011.
  2. [http://www.cftc.gov/ucm/groups/public/@lrfederalregister/documents/file/2011-10884a.pdf Appendix 2—Statement of Commissioner Scott D. O’Malia]. Federal Register. Retrieved on May 6, 2011.

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