November 19, 2010
Thank you all for joining us today for this important meeting regarding the implementation of the Dodd-Frank Act. Today’s meeting will address proposed rules regarding real-time reporting, data record keeping, swaps data repositories and segregation and bankruptcy rules. As with previous proposed rules, I will support publishing today’s rules in their current form, but reserve judgment on the final rules until I carefully review all the comments that the agency receives from the public and get final recommendations from our staff.
This is our 5th public meeting to consider proposed rules pursuant to Dodd-Frank, and when I have a moment to actually reflect on the magnitude of the task before us and the speed at which we are moving forward, I am amazed. You have all heard the phrase “too big to fail” – and just last week Commissioner O’Malia coined the term “too costly to clear” – but my concern is whether we are moving “too fast to follow.”
Our ambitious deadlines call for us to complete almost every rule Dodd-Frank requires by July 15, 2011. However, the rest of the world is not working at this pace. At the 2009 Pittsburgh Summit, the G-20 Leaders declared that all standardized OTC derivative contracts should be cleared through central counterparties by the end of 2012. Additionally, all OTC derivative contracts should be reported to trade repositories. I think there is a fine line between leading the world on financial reform implementation and leaving the world behind. Since we are working at an appropriate pace under the circumstances, it is imperative that we seek input and advice from our sister regulators around the globe throughout this rule-writing process.
It is my understanding that the CFTC rules teams have been reaching out to and cooperating with international regulators in drafting these proposed rules, and it is my hope and expectation that our fellow regulators will continue to participate in the process of promulgating these important rules. It is also my hope that, through this public process and with international cooperation, we will achieve final rules that ultimately will be in harmony with rules adopted by regulators internationally.
I would also like to emphasize how helpful the various public roundtables have been in the process of drafting these proposed rules. The roundtables provided feedback that led to clear improvements in the rules that are being proposed today.
Once again, I feel compelled to point out the expense that will be involved in implementing these proposed regulations. To effectively implement these proposals will require substantial investment in new technology and human resources. If we are to achieve the goal of reducing the risk of future meltdowns, the CFTC requires funding at a level that provides for the technology and staffing needed to do the job.
I would like to again thank the staff at the CFTC for all their hard work.
Last Updated: December 1, 2010