GAO Report: CFTC Is Not Required to Perform Cost-Benefit Analysis on Its Volcker Rule Regulations

The Government Accountability Office (“GAO”) issued a report assessing the CFTC compliance with procedural steps required by Section 801 of Title 5 of the United States Code with respect to conducting a cost benefit analysis of the Volcker Rule. The GAO found that the CFTC complied with the applicable requirements, and did not need to conduct a cost benefit analysis of the new rules regarding proprietary trading.

In the report, the CFTC specified that the final Volcker Rule was promulgated exclusively under Bank Holding Company Act Section 13 (“Prohibitions on Proprietary Trading and Certain Relationships with Hedge Funds and Private Equity Funds”), not the CEA.  The CFTC states that a cost benefit analysis is only legally required when “promulgating a regulation under this [Commodity Exchange] Act.”

See:  GAO Report; Press Release.


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