In a kick-off speech before FIA Expo in Chicago last week, Heath Tarbert, Chairman of the Commodity Futures Trading Commission, said the Commission will propose new position limits rules within the next few months. He also said that, among his other objectives, were issuance of a framework for principles-based regulation generally, principles guidance for digital assets, enforcement penalty guidance, and a cross-border rule for swap dealers. Although he associated no specific time frames with his other objectives, Dr. Tarbert quoted Thomas Edison in saying that “vision without execution is hallucination.”
Separately, Joshua Sterling, Director of the CFTC’s Division of Swap Dealer and Intermediary Oversight, indicated that his Division staff would soon commence targeted thematic reviews of swap dealers and commodity pool operators. In a speech before the Alternative Investment Management Association, Mr. Sterling said the purpose of the review would be “both to mitigate the potential for blind spots in our oversight and enhance our engagement with registrants.” According to Mr. Sterling, firms subject to reviews are those likely “to have a significant impact” on derivatives markets and each review would be completed onsite within five business days. The objective of the reviews is not to refer matters to the Division of Enforcement, he said, but to provide general guidance to the industry and determine potential rulemakings.