Developments in Securities Regulation, Corporate Governance, Capital Markets, M&A and Other Topics of Interest. MORE

In remarks given to the Futures Industry Association, CFTC Chairman Gary Gensler outlined the process for finalizing CFTC rules related to the Dodd-Frank Act.

 Mr. Gensler noted the CFTC still needs to propose rules related to capital and margin, product definitions and the Volcker Rule. 


Some rules are slated for early finalization.  Mr. Gensler noted:

  • This group may include the entity definitions rule and the associated swap dealer and major swap participant registration requirements. It also may include a final rule on the end-user exception from clearing.
  • There are two process rules that the CFTC has discussed finalizing early. These relate to the process for mandatory clearing and Part 40 for rule submissions from clearinghouses and exchanges.
  • The CFTC is also discussing finalizing the large trader reporting rule early, as it is important for the CFTC to accomplish many of its surveillance and position limits initiatives.
  • The CFTC may look to consider some of the rules relating to enforcement, such as the whistleblower rule and the anti-manipulation rule, in the early group.
  • There are also some rules that CFTC proposed early in the process and thus may be ready soonest for Commission consideration. These include the fair credit reporting rule, consumer information privacy rules, conflicts of interest, removing references to credit rating agencies and the related revisions of Rule 1.25 and the definition of agricultural commodities.


Gensler described a set of rule clusters he referred to as the “middle group:”

  • Rules relating to clearinghouses, such as risk management, financial resources, participant eligibility, recordkeeping and straight-through processing.
  • Rules relating to business conduct standards for swap dealers – both internal and external. This includes rules related to sales practices, trading documentation, confirmation, portfolio reconciliation and compression requirements, recordkeeping, conflicts of interest and risk management.
  • Rules relates to data. It includes rules governing swap data repositories (SDRs) and swap data recordkeeping and reporting requirements.
  • Regulations for trading platforms, such as designated contract markets (DCMs), swap execution facilities (SEFs) and foreign boards of trade, as well as real-time reporting and block trading rules.
  • There are a number of other rules that might be included in this middle phase. These include agricultural swaps, governance for DCOs, DCMs and SEFs, and segregation for uncleared swaps.
  • Rule relates to position limits. 

Finally, Gensler described the “late group.”  This group could include the disruptive trading practices interpretive order, product definitions, capital and margin requirements, supervision and testing requirements and conforming rules.  In addition, amongst the late rules, the CFTC may consider finalizing the joint rule with the SEC regarding reporting requirements for investment advisors as well as the CFTC’s similar rule on commodity pool operators.   Rules in the late group probably will not be considered until the late summer and early fall.


Check frequently for updates on the Dodd-Frank Act and other important securities law matters.

Leave a Reply

Your email address will not be published. Required fields are marked *