Opening Statement, Public Meeting on IOSCO report on Principles for the Regulation and Supervision of Commodity Derivatives Markets and the Dodd Frank Act
Commissioner Michael V. Dunn
September 8, 2011
Thank you all for joining us today for this important public meeting. Today, we consider the IOSCO report on Principles for the Regulation and Supervision of Commodity Derivatives Markets.
Over the past few years, and particularly in the aftermath of the financial crisis in 2008, it has become clear to us all that what we do here in the U.S. affects markets around the world. Similarly, actions taken around the world affect the markets here. This global interdependency places a responsibility on regulators to not only understand what the impacts of our actions will be on our markets, but also what the global impacts of our actions will be. Global interdependency also requires us to be aware of how to protect our markets from the negative impacts of actions taken in other financial markets.
I have for some time emphasized the need for the world’s regulatory bodies to work in harmony to prevent a future financial crisis, and, if another crisis should occur, to face it on a global playing field.
The report we consider today represents an important first step toward this harmonization. The IOSCO report establishes internationally accepted principles for the regulation and supervision of commodity derivatives markets. It is my sincere hope that the principles established in the report will lead to meaningful – and consistent – financial regulatory oversight on a global scale.
In addition to the IOSCO report, we also consider today two proposed rules regarding implementation and compliance dates for final rules related to the Dodd-Frank Act. I would like to commend the Chairman and his staff for their transparent approach to these issues. Once the vast majority of Dodd-Frank proposed rules had been completed earlier this year, the Chairman determined that public comment regarding implementation phasing would be useful. On May 2-3, the CFTC and the SEC held a joint roundtable on issues related to implementation. Commission staff proposed 13 concepts to be considered, and staff asked a series of questions based on the concepts outlined. In addition, the Commission reopened the comment period on many of the proposed rules until June 3, 2011, in order to allow for comments from the public regarding the entire mosaic of rules.
The comments made at the roundtable and in the comment letters from various market participants and the public raised key themes that shaped today’s proposed rules. While I understand that there are some who would like even greater clarity regarding the timing of implementation, and I welcome the public’s comments and suggestions during the comment period, I believe that the proposed rules provide clarity for the industry while simultaneously providing the Commission with the flexibility and information it needs to fashion effective final rules.
I would like to again thank the Chairman for the transparent process and for his responsiveness to the questions and concerns of my fellow Commissioners. I would also like to thank the staff for all of their hard work in producing these proposed rules. I appreciate their efforts and look forward to their presentations.
Last Updated: September 8, 2011