CFTC Commissioner Chilton Speech ("Boarding All Rows")
CFTC Commissioner Bart Chilton delivered a speech before the 5th Annual Risk Management in Energy Trading Conference in Houston, Texas on the current progress of implementing Dodd-Frank. Chilton discussed the following topics:
- Transparency - Commissioner Chilton stated that Swap Data Repositories (SDRs) will provide the regulators with needed transparency.
- Market Integrity - According to Chilton, the two challenges in ensuring market integrity are excessive speculation and high-frequency trading. Chilton argues that Dodd-Frank has unambiguously mandated speculative trading limits to avoid excessive speculation.
- Accountability - Commissioner Chilton states that Dodd-Frank will put in place financial firm accountability. Chilton supports the CFTC's proposal, which includes: (i) electronic access to bank records; (ii) standardized auditing procedures; and (iii) liquidity alerts and action steps.
- Enforcement - Commissioner Chilton asserts that the CFTC should be able to fine violators $140,000 per second of violation.
- Futures Insurance - In light of the failures of MF Global and Peregrine, Commissioner Chilton argues that there should be an insurance fund for the customers of CFTC registrants.
- As to timeline, Commissioner Chilton laid out a projected schedule for CFTC rulemaking that projects that all of the rules would be finished by June 1 of 2013 (with the cross-border rules being the last adopted). This timeline is set out in the related news item.
View speech in full here (links externally to CFTC website). See also: Chilton Estimated Timeline on Dodd-Frank Implementation ("Red Zone").