CFTC Extends Comment Deadlines for Several Proposed Rule Changes

Steven Lofchie Commentary by Steven Lofchie

In light of COVID-19 and related actions, the CFTC extended the comment deadlines for several proposed rule changes.

In a 3-2 vote, the CFTC extended the following comment deadlines from:

  • April 29, 2020 to May 15, 2020, for a proposal that would apply federal speculative position limits to 25 "core referenced futures contracts," including futures and options linked to those contracts and economically equivalent swaps;

  • April 20, 2020 to May 22, 2020, for a proposal to amend various Swap Execution Facility requirements to codify previously issued no-action relief; and

  • May 20, 2020 to May 22, 2020, for three proposals to amend CFTC swap recordkeeping and reporting requirements.

Commissioner Statements

CFTC Commissioner Rostin Behnam supported extending the comment periods, but stated that the CFTC is not providing extensions in "any meaningful way" by prolonging three out of the five comment periods for a "mere" two days. Commissioner Dan M. Berkovitz called the extensions "too short." He emphasized that market participants should be allotted a greater amount of time to provide "high-quality" comments in light of the ongoing pandemic.

Commentary

If the CFTC is going to extend comment periods, why not a month, or two months? Why two days? Of all the extensions granted during the pandemic, this must be the shortest.

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