U.S. Senator Offers Measure to Overhaul CFTC Derivatives Rules

The U.S. Senate may vote on a measure to overhaul the implementation of the Dodd-Frank Act’s derivatives regulations, giving the chamber’s Republicans a rare opportunity to strike at a law the majority of them opposed.

Senator Mike Crapo, an Idaho Republican, offered the measure as an amendment yesterday that would restrict funding for the Commodity Futures Trading Commission’s implementation of the law until the agency provides quantitative analyses and assessments of the impact of the new rules on the economy, the $601 trillion derivatives market and its liquidity, as well as an analysis of the international harmonization efforts.

“I focus on the CFTC to send a strong message to all regulators involved in the rulemaking process that we cannot afford regulations that unnecessarily burden our businesses, our economy, and our competitive position in the global marketplace,” Crapo, a senior member of the Banking Committee, said yesterday on the Senate floor.

Crapo’s measure would require the agency to limit its regulatory reach into foreign subsidiaries -- an issue that has drawn bipartisan support on Capitol Hill. The amendment also aims to restrict the agency’s ability to require corporate end- users to post margin on swaps trades.

Crapo’s measure is a pending amendment to a spending bill on the Senate floor. A vote on the amendment hasn’t been scheduled.

To contact the reporter on this story: Phil Mattingly in Washington at pmattingly@bloomberg.net.

To contact the editor responsible for this story: Lawrence Roberts at lroberts13@bloomberg.net

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