CFTC Chairman Also Gives Clues on Rules Timeline
CFTC Chairman Gary Gensler appeared before the Senate Committee on Banking, Housing, and Urban Affairs today and shed some light on the Commission’s plans regarding the rulemakings to implement Dodd-Frank’s non-security swap trading provisions. According to the Chairman, the Commission plans to publish proposed rules in the fall, using weekly public Commission meetings. The Commission’s goal is to publish the vast majority of its proposed rules by the end of December. Chairman Gensler generally envisions four to six months to review the public comments for the proposed rules and then finalize them.
In addition, the Chairman revealed additional details on what type of entities the Commission expects to register as swap dealers. The Commission estimates that as many as 200 entities will register, including:
– approximately 80 global and regional banks currently offering swaps in the U.S.;
– approximately 60 affiliates of existing swap dealers, based on the “push-out” rule with respect to banks;
– approximately 40 non-bank swap dealers currently offering swaps; and
– approximately 20 potential new market makers.
The Chairman’s opening comments are available here.
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