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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
    RTO/ISOs
    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



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