Lucas & Conaway identify specific actions agency can do to make it more transparent
Reps. Frank Lucas (R- OK) and K. Michael Conaway (R-TX) sent a letter to Gary Gensler, chairman of the Commodity Futures Trading Commission (CFTC) on Friday providing specific recommendations for improving the implementation process for Title VII of Dodd-Frank, as the CFTC shifts from proposed rules to final rules.
Key recommendations are for the CFTC to make its rules available to the public before they are voted on by the Commission, and for the CFTC to publish an implementation plan and timeline. In addition, recommendations include cost-benefit analysis for final rules, rationalizing the sequence of rules so that those relating to product and entity definitions are proposed before any further final rules and clarifying the treatment of affiliate trades and extraterritorial scope. Reps. Lucas and Conaway also ask Chairman Gensler to respond to a number of questions by July 29 on how the agency will address the extensive number of public comments the CFTC has received to modify proposed rules to better align with market practices and realities.
“The fact of the matter is that the CFTC’s process has been flawed. We have put forth simple, common sense actions the CFTC can do to improve its process. Each one is aimed at avoiding market disruption or economic harm from poorly vetted or rushed rules. With unemployment hovering above 9 percent, Chairman Gensler should be accountable,” said Rep. Frank D. Lucas, Chairman of the House Agriculture Committee.
A copy of the letter can found here.
