After years of laboriously writing rules, the CFTC has now taken an initial move toward enforcement by issuing fines for Dodd Frank violations of reporting obligations. We expect this is this activity to expand greatly in the coming years.
The Dodd-Frank goal of a complete picture of swaps activity appears to be light years away. Chief regulator, the CFTC, is clamping down on industry compliance with newly established swaps reporting rules, just as market participants publicly complain to Congressional authorities that rules are too harsh. Discord in the derivatives regulation is not new but the rhetoric surrounding troublesome Dodd-Frank reporting rules had been generally positive until recently, when the CFTC began handing down enforcement orders and warnings to those firms that failed to comply.