Senator Roberts Issues Critical Statement on CFTC Rulemaking Process

U.S. Senator Pat Roberts (R-Kan.), Ranking Member of the Senate Committee on Agriculture, Nutrition and Forestry which is tasked with oversight of the Commodity Futures Trading Commission (CFTC), released a statement on the implementation of the CFTC's new "Swaps Definitions" rules. Here is an excerpt from the Senator's remarks:

"On the heels of the federal district court's decision to block the CFTC proposed ‘position limits' rule on trades of derivatives and swaps, we brace ourselves for the results of new regulations meant to bring transparency to the market that have in reality brought confusion, concern and do not inspire confidence in the CFTC's leadership. When the congress resumes session, the Senate Agriculture Committee should hold hearings to examine the consequences," Roberts said.

"Unfortunately, it's my view that CFTC Chairman Gary Gensler is using his newfound power to unilaterally impose his will on financial markets. Most distressing is that while Mr. Gensler has tried to create his regulatory agenda, he and the CFTC have miserably failed in their oversight of existing regulations and market participants. First they missed MF Global and less than a year later we had the Peregrine debacle. . . . "

In the statement, Senator Roberts asserted that CFTC commissioners "complain that they are out of the loop"by the CFTC's Chairman; Senator Roberts also states that there are numerous reports that "animosity between the SEC and the CFTC is palpable." Senator Roberts also makes mention of the complaints of foreign regulators as to the rulemaking initiatives of the CFTC.

View statement in full here (links externally to AG Senate website).