Alert October 09, 2012

CFTC Chairman Suggests Timeline for Future Dodd-Frank Regulations

In a speech before the Financial Markets Law Committee Seminar at the Bank of England, CFTC Chairman Gary Gensler suggested possible timing for the CFTC to finalize outstanding regulations mandated by the Dodd-Frank Act.  He stated that the “first set” of clearing requirement determinations may be finalized in October 2012, with mandatory compliance phasing in, depending on the type of entity, between January and the summer of 2013.  Regulations involving transparency, such as those pertaining to minimum block sizes and swap execution facilities, should be finalized in the fall of 2012.  Chairman Gensler expressed his expectation that the CFTC will address final margin rules in early 2013.  He also observed that the CFTC is in the process of finalizing its interpretive guidance regarding the cross-border application of its swap regulations, but did not give an anticipated timeline for completing the guidance.  In addition to rulemaking initiatives, Chairman Gensler discussed LIBOR rate manipulation and CFTC cooperation with global regulators in the matter.