Statement of Support on Three Final Rules Under the Dodd-Frank Act
Chairman Gary Gensler
August 4, 2011
Registration and Regulation of Swap Data Repositories
I support the final rulemaking to establish registration and regulatory requirements for swap data repositories (SDRs). When this rule is fully implemented, all swaps – whether cleared or uncleared – will be reported to an SDR registered with the Commodity Futures Trading Commission (CFTC). Registration will enable the Commission and other regulators to monitor market participants for compliance with the Dodd-Frank Wall Street Reform and Consumer Protection Act as well as CFTC regulations. The rule implements congressional direction that the Commission and other regulators have direct access to the information maintained by SDRs. It requires SDRs to verify the accuracy and completeness of all of the swaps data they accept. It also contains provisions to permit SDRs to aggregate certain information for regulators and the public. This rule will enhance transparency in the swaps market and help reduce systemic risk.
I support the final rulemaking to establish a program for whistleblowers as mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act. Congress enacted these provisions to incentivize whistleblowers to come forward with new information about potential fraud, manipulation or other misconduct in the financial markets. The final rule authorizes the Commodity Futures Trading Commission (CFTC) to provide a monetary award to whistleblowers when their original information leads to a successful enforcement action that results in sanctions over $1 million. The rule encourages people to assist the CFTC in identifying, investigating and prosecuting potential violations of the Commodity Exchange Act.
I support the final rulemaking to authorize agricultural swap transactions and subject them to the same rules applicable to all other swaps transactions. The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) prohibits such transactions if the Commodity Futures Trading Commission (CFTC) does not specifically authorize them. The public comments the CFTC received overwhelmingly supported treating agricultural swaps the same as other swaps brought under regulation by the Dodd-Frank Act. Agricultural producers, processers, merchants and handlers will benefit from the ability to use agricultural swaps to hedge their risk and from the transparency of the Dodd-Frank Act.
Last Updated: August 4, 2011