View source for CFTC Open Meeting, November 10, 2010

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{{Timeline-Conflicts of Interest for Swap Dealers, Major Swap Participants, Futures Commission Merchants, and Introducing Brokers}}
{{Timeline-Duties for Swap Dealers and Major Swap Participants}}
{{Template:Timeline-Registration of Foreign Boards of Trade}}
{{Timeline-Registration of Swap Dealers and Major Swap Participants}}
{{Timeline- Whistleblower Provisions}}
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<div class="item">[http://www.marketswiki.com/mwiki/CFTC Commodity Futures Trading Commission]</div>
<div class="item">[http://www.marketswiki.com/mwiki/Gary_Gensler Gary Gensler]</div>
<div class="item">[http://www.marketswiki.com/mwiki/Jill_Sommers Jill Sommers]</div>
<div class="item">[http://www.marketswiki.com/mwiki/Michael_Dunn Michael Dunn]</div>
<div class="item">[http://www.marketswiki.com/mwiki/Scott_O%27Malia Scott O'Malia]</div>
<div class="item">[http://www.marketswiki.com/mwiki/Dodd-Frank_Act Dodd-Frank Act]</div>
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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:<ref>{{cite web|url=http://www.cftc.gov/PressRoom/Events/opaevent_cftcdoddfrank111010.html|name=Open Meeting on Fourth Series of Proposed Rules under the Dodd-Frank Act|org=CFTC|date=March 7, 2011}}</ref>
* 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:'''
*[http://www.capitolconnection.net/capcon/cftc/111010/wmarchive.htm Windows Media format]
*[http://www.capitolconnection.net/capcon/cftc/111010/rmarchive.htm Real Player format]

== 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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'''Registration of Foreign Boards of Trade'''
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'''Registration Process for Swap Entities'''
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'''Whistleblower Incentives and Protection'''
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== 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 [[CFTC Open Meeting, December 1, 2010|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 ==
<references/>

[[Category:CFTC Open Meetings]]
[[Category:Swaps]]
[[Category:Compliance]]
[[Category:Conflicts of Interest]]
[[Category:Swap Entities]]
[[Category:Swap Dealers and Major Swap Participants]]
[[Category:Registration Requirements]]
[[Category:Foreign Boards of Trade]]
[[Category:Whistleblower Provisions]]