In remarks before the European Parliament, Economic and Monetary Affairs Committee, CFTC Chairman Gary Gensler addressed implementation of the Dodd-Frank Act.
Mr. Gensler noted Congress gave the CFTC flexibility as to setting implementation or effective dates of the rules to implement the Dodd-Frank Act. Rules will not be implemented in the order they are finalized. Implementation dates may be conditioned upon other rules being finalized.
According to Mr. Gensler, the CFTC is looking at phasing implementation dates based upon a number of considerations, possibly including asset class, type of market participant and whether the requirement would apply to market platforms, like clearinghouses, or to specific transactions, such as real time reporting. The CFTC is considering whether a rule might become effective for one asset class or one group of market participants before it is effective for other assets or other groups of market participants.
Mr. Gensler stated “regardless of the eventual effective dates of the swaps rules, to provide regulatory certainty to the market, rules relating to mandatory clearing, real time reporting, the trading requirement, margin and business conduct standards will apply only prospectively to those transactions that are executed after the rules go into effect.”
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