Alert September 21, 2010

CFTC Chairman Speaks about Rulemaking to Implement Dodd-Frank Act’s Regulation of Swaps

In his keynote address for the ISDA Regional Conference in New York City, CFTC Chairman Gary Gensler discussed the CFTC’s efforts to implement the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) with regard to regulation of the swaps marketplace.  Chairman Gensler estimated that more than 200 entities will register as swap dealers and 20 to 30 new entities will register as swap execution facilities or designated contract markets as a result of the Dodd-Frank Act and the rules being promulgated by the CFTC and SEC.  Gensler noted that the CFTC is actively working with international regulators to harmonize swaps market oversight.  Citing to the European Commission’s proposed legislation on over-the counter derivatives released on September 15 2010, Chairman Gensler stated his confidence in “strong and consistent regulation of the U.S. and European swaps market.”  For further discussion of swaps marketplace regulation under Title VII of the Dodd-Frank Act, see the August 2, 2010 Special Edition of the Alert).