The CFTC votes to extend, reopen public comment period for Dodd-Frank proposals.
The Commodity Futures Trading Commission wants more input on proposed derivatives rules. On Wednesday the CFTC voted 4-1 to extend or reopen some of the comment periods.
CFTC Chairman Gary Gensler said the extensions and reopening will allow the public to submit “any comments they might have after seeing the entire mosaic at once.” The “mosaic” Mr. Gensler referred to is the body of rules the CFTC has and will write as part of Dodd-Frank. “This will allow market participants to evaluate the entire regulatory scheme as a whole.”
Treasuries and companies that have not weighed in should take advantage of the extensions because an end-user exemption for central clearing and margining is still somewhat up in the air. An exemption for corporate derivatives users could possibly stand, according to the CFTC’s view, however other prudential regulators may say otherwise (see related story here). Nonetheless, as it seems the CFTC is still undecided, it would be prudent for companies to continue to press their case.
“I am hopeful that market participants will continue to comment about potential compliance costs as well as phasing in of implementation dates to help the agency as we go forward with finalizing rules,” Mr. Gensler said.
One opportunity for end-users to make their case will be next week’s two-day CFTC staff roundtable, where the agency hopes to hear from the public “on the best schedule of implementation dates for the effective dates of final rules.”
Meanwhile, Rep. Barney Frank, according to financial advisor Web site InvestmentNews.com, indicated that missing a deadline on Dodd-Frank was no big deal. Speaking at a National LGBT Bar Association event, Mr. Frank said, “There is no penalty for not meeting the deadline. There’s no gun at their heads. Nobody gets fired.” He added that he was comfortable with regulators taking their time as they sift through the rules and their impact.
These respites aside, corporate end-users should make themselves heard.