Podcast Center
Video Center
Webcasts
Resource Center
Events
July 08, 2011 at 09:39 AM
Working to finalize close to 50 rules, the Commodity Futures Trading Commission (CFTC) approved five on Thursday, including one designed to combat fraud and manipulation in derivatives trading.
While the CFTC is behind schedule in rulemaking according to the Dodd-Frank timetable, it has picked up the pace, scheduling additional meetings in the coming months and scheduling votes on the remaining rules in stages over the course of the rest of the year.
Thursday’s meeting saw the finalization of rules on:
- Agricultural commodity definition
- Business affiliate marketing and disposal of consumer information rules
- Privacy of consumer financial information—conforming amendments (part 160)
- Prohibition on the employment, or attempted employment, of manipulative and deceptive devices, and prohibition on price manipulation
- Large trader reporting for physical commodity swaps.
Perhaps the most significant among them was the one designed to counteract market manipulation and fraud. Despite comments that suggested that wording was too broad or that wording specifying attempts, rather than successful efforts, at fraud and manipulation, should be deleted, the CFTC passed it. Chairman Gary Gensler (left) of the CFTC said of the action, “This closes a significant gap as it will broaden the types of cases we will pursue and improve the chance of prevailing over wrongdoers. It is a significant rule.”
Gensler said in his opening statement, “This spring, we substantially completed the proposal phase of rule-writing and further benefited from an extra 30 days for public comment. The staff and commissioners now are turning toward final rules.”
