In a quiet note on its website, the CFTC has delayed enforcement of Dodd Frank Act rules designed to curb the use of foreign affiliates by US financial institutions to engage in "regulatory arbitrage." At Direct Swap we advocate vigorous enforcement of all of Dodd Frank's derivatives rules, including the one delayed here.
The Commodity Futures Trading Commission will postpone enforcing a provision applying the rules to trades structured in the U.S. that banks then book in overseas affiliates, according to a notice posted on its website today. The agency granted the delay until as late as Sept. 30, 2015. Timothy Massad, the agency’s chairman, told traders in Chicago on Nov. 5 that he supported a delay to give regulators “the necessary time to consider” the issues. “We should strive for rules that are clear and predictable -- and that, as much as possible, do not create negative effects on competition,” Massad said at the Futures Industry Association conference.