CFTC Acting Chair Mark Wetjen and Commissioner Scott O'Malia issued statements at the public roundtable concerning end users and Dodd-Frank. Acting Chair Wetjen and Commissioner O'Malia both stated that they are pleased to see the CFTC hold a meeting to address issues concerning end users.
Acting Chair Wetjen stated that the CFTC will publish a Notice of Proposed Rulemaking that would amend the de minimis exception from swap dealer registration to address an issue as to government-owned electric utilities and special entities. He explained that, going forward, the CFTC "must continue to remain open to revisiting certain rules and making adjustments as necessary."
Commissioner O'Malia stated that he has advocated consistently for the protection of end users from Dodd-Frank's expansive regulatory reach. He noted that "end-users are getting caught up in the CFTC's rules or are spending too much time and resources to get the necessary reassurance from the Commission that they are entitled to the protection that Congress afforded them in Dodd-Frank." Commissioner O'Malia stated that he is pleased the CFTC will be reviewing CFTC Rule 1.35 ("Records of Commodity, Interest and Related Cash or Forward Transactions") and the de minimis threshold for swap dealing to government-owned electric utilities.
See: Chair Wetjen's Statement; Commissioner O'Malia's Statement.
Related news: CFTC No-Action Letter (14-34) Raises De Minimis Threshold for Swaps with Utility Special Entities (with Lofchie Comment) (March 21, 2014); CFTC Commissioner O'Malia Remarks on the Impact of Dodd-Frank on Commodity Futures and Swaps Markets (with Lofchie Comment) (March 21, 2014).