March 20, 2012
As regulators, it’s our job to make sure the markets we oversee operate efficiently and effectively. Sometimes, to nudge the market in the right direction, we (the rule-makers) need to set standards that "raise the bar." We are raising the bar today by requiring straight-through processing of swap transactions, in a way that encourages the functioning of markets in a more streamlined fashion. This will be good for all market participants and for consumers.
I am supporting this final rulemaking. I have listened to and met with some who seem to think this rule (and maybe even doing what Congress has clearly directed us to do in other rulemakings) is going too far. But, I don't agree. What we are doing in this instance is a necessary step in the transition to safer and more efficient and effective markets.
A month ago, I spoke about the regulatory balancing act the Commission is undertaking. This rulemaking will help us keep our balance, so to say, as we move toward more fulfilling the clearing mandate.
In order to do our job well, we need to make sure all the provisions are in place: the logistics. This rulemaking ensures that some critical provisions, streamlined straight-through processing and rigorous risk management standards for clearing members, are in place in time for the move toward more clearing.
Finally, as I have said before, all of these rules (and the components of them, like the cost benefit analyses) are part of our effort to implement the financial reforms mandated by Dodd Frank. The cost of the economic crisis to our nation has been staggering. People are living with the effects still today. This rule is but one of many the Agency has worked on so that the integrated whole of reform that the CFTC and others are working on will work and protect the American people as intended.
I thank the staff and my colleagues for their work.
Last Updated: March 20, 2012