As the clock winds down on the deadlines to comply with the Dodd-Frank Wall Street reform act, the Commodity Futures Trading Commission (CFTC) Monday is expected to clear up questions in the market pertaining to the deadline for registration of swap dealers.
In a recent meeting with Wall Street groups, CFTC Chairman Gary Gensler indicated that Wall Street banks and other entities would not have to register as swap dealers until Jan. 1, giving them a nearly two-month reprieve from the October deadline, The New York Times reported.
CFTC spokesman R. David Gary said the agency planned to issue a press release Monday announcing a question-and-answer to further clarify the change in time line.
In mid-July, the CFTC approved the final rule defining a swap, which set in motion the implementation of nearly a dozen rules to go into effect 60 days after publication in the Federal Register, including rules related to the registration of swap dealers (see Daily GPI, July 11).
At the time, Commissioner Scott O'Malia warned the agency of overloading the industry. "I am somewhat fearful that the majority of market participants will be unprepared to comply with the cascade of requirements that are about to befall them. We are asking hundreds, if not thousands, of market participants to comply with several arduous rules at the flick of a switch," he said.
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