CFTC limits plan could give rise to smaller firms
February 10, 2011
The CFTC's attempt to rein in speculation could give rise to a plethora of smaller market players, posing an oversight challenge for the understaffed agency, industry insiders said. Gregory Mocek, a former enforcement director at the CFTC, and current partner at Cadwalader said it is possible that imposing position limits could spur smaller firms without cutting back on the volume of activity in markets.
Mocek also commented on the CFTC's failure to issue definitions under Dodd-Frank. "There's a real possibility that the fact that the commission will put out the definition of a swap after it put out all these regulations will create problems for them in the enforceability of rules," Mocek said. "That should be a legitimate concern."
Cross References
Dodd-Frank Act, Title VII, Secs. 721 and 737