Statement of Support for the Proposed Interpretative Statement Regarding Confidentiality and Indemnification Provision in the Dodd-Frank Wall Street Reform and Consumer Protection
Commissioner Scott D. O’Malia
May 1, 2012
Washington, DC – I concur in support of the Commission’s proposed interpretative statement (“Proposed Interpretative Statement”) regarding the confidentiality and indemnification provisions of Section 21(d) of the Commodity Exchange Act (“CEA”).
Ultimately, Congress should repeal the confidentiality and indemnification provisions of Section 21(d) of the CEA and the Commission should publicly support that repeal. Absent a legislative fix, however, I believe the Commission is taking the right step to allay the concerns expressed by many foreign regulatory authorities.
I am somewhat concerned that the Proposed Interpretative Statement does not address one important issue. Specifically, the Proposed Interpretative Statement would not provide foreign regulatory authorities with access to swaps data if those authorities had not yet finalized their regulations. In order to better understand the public’s view on this issue, I have added a question seeking comment on how the timing and implementation of foreign jurisdictions’ regulatory regimes should affect the Commission’s final interpretation.
Lastly, I am pleased that this Proposed Interpretative Statement is based on principles of international harmonization and comity. The Commission should continue to consult with foreign regulatory authorities in a manner consistent with international agreements regarding the registration of swap data repositories and the sharing of swaps data. In my view, these principles should establish the foundation of the Commission’s forthcoming rulemaking concerning the 20 extraterritorial application of the Dodd-Frank Act to foreign-based entities. Several foreign jurisdictions are in the process of finalizing new rules for the regulation of swaps and it is important that those rules provide a level and competitive playing field for U.S. firms as well.
Last Updated: May 2, 2012