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  • “Red Zone”

    Statement of Commissioner Bart Chilton on Dodd-Frank Implementation Progress

    November 8, 2012

    It’s football season and there’s a saying in the sport that a team getting close to the goal line is in the “red zone.” CFTC’s Dodd-Frank implementation and rulemaking processes are in the red zone, too.

    It’s been a long drive down the field. We have finalized roughly two-thirds of the 60 rules we were charged with promulgating under the financial reform law. It’s taken longer than some of us hoped at the kickoff, but now the goal line is in sight.

    I’ve put together an estimated time-line that clearly shows—on just one page—how close we are to completing the process. Many more rules will be finished by the end of the year. A few will move over into next year, primarily so that businesses, market participants and foreign regulators can make the practical adjustments they’ll need to make.

    Yes, we still need to keep moving the ball but, we’re at a very manageable point in the process of completing this enormous undertaking. During the course of a football game there is always a lot of yelling and yelping both from the sidelines, and on the field. That happens in government too, and Dodd-Frank implementation is no exception. That said, what follows shows that, despite what some have argued, we have a game plan. Like in sports, game plans don't always go as planned, but you go forward and do the best you can to be successful.

    CFTC Dodd-Frank Update
    Commissioner Bart Chilton

    GOAL: December 31, 2012
    Final Rules:

      Clearing Requirement Determination [this may go on November 15]
      Cooperative Clearing Exemption
      Inter-affiliate Clearing Exemption
      SEF Rules
      Block Trading Rule for Swaps
      DCMs – Core Principle 9
      Disruptive Trade Practices Interpretation
      Records of cash commodity, futures, option, and swap transactions (Rule 1.35)
      CPO Harmonization
      RTO/ISO Exemptive Relief
      201(f) Exemptive Relief
      Segregation for Uncleared Swaps
      Systemically Important Clearing Organizations –recovery time

    Proposed Rules and Orders:

      Guarantees of Swaps
      Position Limits

    Relief Expires:

      Registration Relief for Certain IBs
      Temporary Relief from the De Minimis Threshold
      CPOs and CTAs doing FX
      Cross-Border Interim Relief
      Alternative Schedule for Compliance with Rule 1.74

    GOAL: March 13, 2013
    Final Rules:

      Capital for SDs and MSPs
      Margin for Uncleared Swaps
      Governance and Conflict of Interest (DCMs, DCOs & SEFs)
      Guarantees of Swaps
      Identity Theft
      Volcker Rule

    Proposed Rules and Orders:

      Stress Testing under Section 165
      Systemically Important Clearing Organizations – Liquidity

    Relief Expires:

      Part 23, Subpart F – Internal Business Conduct Books and Records requirements
      201(f) electric utilities
      ECP Status, Swap Guarantee Arrangements, Jointly and Severally Liable Counterparties, Amounts Invested on a Discretionary Basis, Anticipatory ECPs
      Cleared Swaps in Agricultural and Exempt Commodities and EFSs

    GOAL: June 1, 2013
    Final Rules:

      Cross-Border – Exemptive Order and Interpretive Guidance, any remaining issues

    Last Updated: November 8, 2012