Chairman Gary Gensler Testifies (with Delta Strategy Group Summary and Lofchie Comment)

CFTC Chairman Gary Gensler testified at the House Committee on Oversight and Government Reform hearing, "Preventing Violations of Federal Transparency Laws," focusing primarily on regulators' use of personal e-mail while working in an official capacity. In his testimony, Chairman Gensler reaffirmed the CFTC's commitment to reforming the swaps market and bringing greater transparency to the Commission. The Chairman asserted that the CFTC has displayed a commitment to transparency by noting that the agency:

• Posted over 2,000 meetings on the CFTC website;
• Increased public CFTC meetings, where rules are openly debated; and
• Initiated public roundtables to facilitate public interaction on matters before the CFTC.

Lofchie Comment: There are various ways to measure "transparency." As we noted in yesterday's news, one of the fellow CFTC Commissioners had complained that his questions were not included in the CFTC's concept release on automated trading. See CFTC Concept Release on Supervision and Regulation of Automated Trading (with Delta Strategy Group Summary and Lofchie Comment). If the questions that are asked are edited, that limits the range of public debate. Separately, we had observed that the CFTC's adoption of its cross-border regulation through "guidance," rather than rulemaking, prevented a formal public comment process on that proposal. Industry Groups Submit Critical Comments on CFTC Cross-Border Guidance (with Lofchie Comment).

Click here for Delta Strategy Group Summary of Chairman Gensler's Testimony.See also: Full Text of Chairman Gensler's Testimony.