The U.S. Commodity Futures Trading Commission will consider a proposal today exempting swaps from Dodd-Frank Act rules set to take effect in mid-July, giving the agency more time to finish writing regulations for the $601 trillion market, said Gary Gensler, CFTC chairman.
The agency will consider a proposal providing “temporary relief” from some regulatory requirements scheduled to be in force on July 16, one year from the enactment of Dodd-Frank, Gensler said in a letter to three Republican senators.
“The proposed relief would make it clear that, though the law will have changed, as a practical matter, the market will have relief during the period of the exemption,” Gensler said in the letter dated June 10 to Senators Pat Roberts, a Kansas Republican, Richard Lugar, an Indiana Republican, and Saxby Chambliss, a Georgia Republican.
The CFTC and Securities and Exchange Commission are continuing to seek comment on rules, and have said they would miss the scheduled completion date for some measures.
“There is too much at stake for these questions to go unanswered,” Roberts said in a statement today. The CFTC proposal would be open for public comment, Gensler said.
The U.S. Securities and Exchange Commission, which has authority over security-based swaps, will publish guidance on which rules take effect on July 16 and will provide “temporary relief” from some provisions, the agency said last week.