GOP attempts to ‘starve’ CFTC of funding to assist in developing new OTC derivatives rules under fire
February 11, 2011
Republican efforts to limit funding for the CFTC in in order to hinder development of new over-the-counter derivatives rules could significantly harm the energy industry, according to lawyers, lobbyists, energy traders and former CFTC officials.
"Without the proper funding, you may have a regulator that has a new authority without the tools to go about enforcing that authority," Gregory Mocek, an attorney with Cadwalader, Wickersham and Taft and a former CFTC director of enforcement, said on the sidelines of a Commodity Markets Council conference this week in Florida. "I'm not sure that helps the industry."
Mocek also said the new rules, on everything from a new manipulation standard to speculative position limits, are coming fast, but the industry is largely unaware of what the changes will mean.
Cross References
Dodd-Frank Act, Title VII, Sec. 723(a)(7); new CEA Sec. 2(h)(7); proposed CFTC Rule 39.6