Statement on Support of the Dodd-Frank Rulemaking of Chairman
October 19, 2010
Statements for the record on each rule:
Agriculture Commodity Definition
I support the proposal to publish for comment a definition of the term, “agricultural commodity.” This is necessary as the Dodd-Frank Act includes two provisions that apply to swaps in an agricultural commodity, as defined by the CFTC. First, the definition will be used to fulfill the Dodd-Frank Act’s requirement that swaps in an “agricultural commodity” be prohibited unless permitted under the Commission’s general exemptive authority. An Advance Notice of Proposed Rulemaking seeking comment on the appropriate conditions, restrictions or protections to be included in any rules governing agricultural swaps is currently out for comment. Second, the Dodd-Frank Act directs the Commission to adopt speculative position limits for “agricultural commodities” within 270 days of the enactment of Dodd-Frank.
I believe the proposed agricultural commodity definition draws a good line between agricultural and non-agricultural commodities, though I am very interested to hear the public’s views on this definition.
Large Trader Reporting Rule
I support the proposed large trader reporting rulemaking for physical commodity swaps. The Commission currently receives data on large positions in all physical commodity futures traded on DCMs and uses it for market surveillance purposes, including position limit enforcement. With today’s proposed rule, we would have an analogous reporting system for swaps.
The proposal would require position reports on economically equivalent swaps from clearing organizations, their members and swap dealers. This will enable the CFTC to receive such data until swap data repositories are in operation and capable of fulfilling the Commission’s need for this information.
I support today’s Commission vote on the proposed rulemaking providing privacy protections to nonpublic, consumer information held by entities that are subject to the jurisdiction of the Commission. The proposed rulemaking provides customers of Commission-regulated entities with the same privacy protections now enjoyed by the customers of entities regulated by other federal agencies.
The proposal includes two important rules. The first allows customers to prohibit Commission-regulated entities from using certain consumer information obtained from an affiliate to make solicitations to that customer for marketing purposes. This will be done by means of a customer opt out. The second rule requires Commission-regulated entities to develop and implement a written program and procedures for the proper disposal of consumer information. I believe that these rules will help prevent the unauthorized use and disclosure of nonpublic, consumer information.
I support today’s Commission vote on the notice of public rulemaking, which expands the scope of the Commission’s existing protections afforded to consumers’ information to two new entities created by the Dodd-Frank Act. The proposed rulemaking expands the Commission’s Part 160 rules to customers of swap dealers and major swap participants. Part 160 includes the Commission’s existing privacy rules for consumers.
Last Updated: October 19, 2010