CFTC Commissioner Bart Chilton delivered a speech before the 5th Annual Risk Management in Energy Trading Conference in Houston, Texas on the current progress of implementing Dodd-Frank. Chilton discussed the following topics:
- Transparency – Commissioner Chilton stated that Swap Data Repositories (SDRs) will provide the regulators with needed transparency.
- Market Integrity – According to Chilton, the two challenges in ensuring market integrity are excessive speculation and high frequency trading. Chilton argues that Dodd-Frank has unambiguously mandated speculative trading limits to avoid excessive speculation.
- Accountability – Commissioner Chilton states that Dodd-Frank will put in place financial firm accountability. Chilton supports the CFTC’s proposal, which include: (i) electronic access to bank records; (ii) standardized auditing procedures; (iii) liquidity alerts and action steps.
- Enforcement – Commissioner Chilton asserts that the CFTC should be able to fine violators $140,000 per second of violation.
- Futures Insurance – In light of the failures of MF Global and Peregrine, Commissioner Chilton argues that there should be in insurance fund for the customers of CFTC registrants.
- As to timeline, Commissioner Chilton laid out a projected schedule for CFTC rulemaking that projects that all of the rules would be finished by June 1 of 2013 (with the cross-border rules being the last adopted).
View speech in full here (links externally to CFTC website).
See also: Chilton Estimated Timeline on Dodd-Frank Implementation (“Red Zone”).