CFTC Commissioners Point to “Unintended Consequences” of Dodd-Frank’s Title VII

Rostin Behnam, speaking broadly about his priorities as a newly confirmed Commodity Futures Trading Commission (CFTC) Commissioner, recently said he hopes to focus on some of the "unintended consequences" of the CFTC's implementation of Title VII of the Dodd-Frank Act, governing derivatives oversight.

According to a recent Bloomberg Government article, Behnam stated that "there are several things that the commission can address in short order to alleviate some of the regulatory pressures that, again, were unintended—outside of the scope of financial reform."

Fellow CFTC Commissioner Brian Quintenz also said his priorities include improving the efficiency of the CFTC's processes for better managing market risk. "There are a lot of examples, unfortunate scenarios, where one-size-fits-all regulations are not working very well."

Over the past year, SFIG has held multiple meetings with Congressional staff, the CFTC and prudential regulators to share our members' concerns regarding market impact and downgrade risk for legacy deals if permanent relief from margin posting requirements is not granted. We have also submitted several no-action requests seeking relief from bilateral margin posting requirements for swaps entered into with legacy special purpose vehicles.

If you would like to join SFIG's Derivatives Task Force, please contact Alyssa.Acevedo@sfindustry.org.

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