On June 9th, CFTC Chairman Gary Gensler announced that the agency will likely issue a proposal by June 14th that will shield the “harmless” users of the derivatives market from negative legal consequences and uncertainty associated with implementation of Dodd-Frank. The proposal aims to temporarily blunt the effects of Title VII of the financial reform legislation and provides relief while the agency finishes rule writing on parts of Title VII. If the Commission approves a proposal on June 14th, the agency will seek a short public comment period. Additionally, Gensler said the agency is working with the SEC on the relief strategy. The SEC recently announced that it is considering providing guidance on Title VII to remove uncertainty and provide additional clarification in advance of the July 16th statutory deadline for rulemaking.

Chairman Gensler will be testifying before the Senate Agriculture Committee the day after this announcement comes out and we anticipate that he will be questioned thoroughly about it, as well as other concerns about the pace of the CFTC‟s rulemaking in implementing Dodd-Frank.