On June 2nd, CFTC Chairman Gary Gensler announced that the agency will be issuing a preventative measure to protect derivatives users from legal issues and uncertainty before the July 16th deadline to enforce certain Dodd-Frank requirements. This measure will apply to “harmless” regulated institutions subject to derivatives rules. Gensler said the CFTC is “looking at how to, in essence, give the market certainty. It might be even considered as interim relief.”
Gensler announced the preventative measures at the National Association of Corporate Treasurers' 2011 National Conference, where he also rejected the congressional plan to delay implementation of portions of the Dodd-Frank derivatives regulations. Both the House Financial Services and House Agriculture committees have passed legislation to delay the Dodd-Frank rulemakings at the CFTC, but the measure is not expected to move in the Senate. Gensler also said that legislative action is not necessary and that regulators have “have ample latitude within the statute to address any July 16 issues” that may arise. For example, the CFTC is working to determine which portions of the statute require rulemaking and which portions are “self-effectuating.” Gensler implied that the self-effectuating portions of the statute would not require CFTC action in order to have the power of final rules. Finally, Gensler said that the CFTC has consulted with the SEC on the possible options the agencies can take to provide relief to those affected by derivatives rules.