The CFTC Does Net Neutrality? Or, The Blob Grows Some More
Economist Craig Pirrong compares the CFTC's Proposed Rule on Core Principles for Designated Contract Markets, which would among other things regulate the pricing of exchange services, to the FCC's net neutrality rule proposal, which would regulate the terms on which the operators of internet services can offer and price access to their systems. Observing that the CFTC's imposes constraints on the terms on which operators of exchanges can offer access to their trading facilities, Pirrong concludes that this proposal is "yet another troubling example of the expansion of the CFTC's authority."
The proposed rule would among other things suppress price differences across entities in a particular category requiring the kind of FCC or FERC-like rate regulatory competence for measuring cost differences that Pirrong argues the CFTC does not have.
Publication
Streetwise Professor
Date
January 12, 2011
Cross References (links may require a Cabinet subscription)
Dodd-Frank Act, Title VII, Sec. 735
CEA Secs. 2(h)(8) 5
17 CFR Parts 1, 16, and 38