CFTC gives itself more time on Dodd-Frank

{mosads}Dodd-Frank handed the CFTC and the Securities and Exchange Commission (SEC) a particularly large plate of work, charging both agencies with drafting dozens of new rules to regulate previously untouched sections of the financial markets, such as derivatives.

The CFTC’s move came just five days after the SEC took a similar approach, announcing on its website that it was establishing a blueprint for how the large number of new derivatives rules would be rolled out, clarifying which ones will take effect by July 16. In addition to announcing which rules will take effect at the original deadline, the SEC will also “provide temporary relief” to others because it was still seeking input from the private sector.

The postponement could be seen as a win by some critics of Dodd-Frank in the financial industry and within the halls of Congress. Republicans have pushed legislation that would have delayed the derivatives rules for over a year, and cited the CFTC’s move as proof the original deadlines laid out in the law were too aggressive.

“Today’s action should provide additional certainty to the market,” said Rep. Frank Lucas (R-Okla.), the chairman of the House Agriculture Committee. “I’m encouraged to see Chairman Gensler acknowledge that the statutory deadline isn’t realistic or reasonable, and that delaying regulations to ensure we get them right is critical to protecting the U.S. economy.”

However, Gensler said Tuesday the CFTC’s move was not an attempt to delay implementation of Dodd-Frank. Rather, it is intended to provide “the time necessary for the Commission to complete the rulemaking process to implement the Dodd-Frank Act.”