US regulators set to miss Dodd-Frank deadline
February 10, 2010
US regulators will miss a July deadline set by Dodd-Frank legislation for some of the rules on newly policed swaps markets, the head of the main derivatives regulator has said. Gary Gensler, chairman of the CFTC, said the regulator was still working towards the deadline, but that some of the rules will be put in place after July, and that "We don't have the budget for implementation."
There are concerns that these users might still be subject to margin requirements, however. "There is a growing concern among end-users that they will be subject to margin requirements," said Frank Lucas, who heads the House Agricultural committee.
Terence Duffy, chairman of the CME, was critical of the scale and scope of rules being written by regulators like the CFTC, which he said was over-extending its reach and duplicating work done by self-regulatory organisations. Mr Duffy said the rule making schedule should be extended. "Are we creating an environment that makes it too costly to clear and puts risk management out of reach?" Mr Duffy said.
Cross References
Dodd-Frank Act, Title VII, Secs. 723(a)(7) 731; new CEA Secs. 2(h)(7) 4s(e)(3)(A)
CWT C&F Memo: Regulation of End Users of Swaps Under the Dodd-Frank Wall Street Reform and Consumer Protection Act (July 2010)