The U.S. Commodity Futures Trading Commission should make the process of adopting Dodd-Frank Act rules more transparent by publicly posting drafts of new regulations for the $601 trillion swaps market for seven days before the agency finalizes them, the chairman of the House Agriculture Committee said.
The agency should also adopt no more than three rules at each meeting and publish a plan for when the rules would take effect in the market, Representative Frank Lucas, Republican of Oklahoma, said in a letter today to Gary Gensler, CFTC chairman.
“This transparency will help to mitigate any potential market disruption as rules become effective,” Lucas said.
The CFTC has begun finalizing rules, including new powers for the agency’s enforcement lawyers to pursue fraudulent manipulation in derivatives markets. The agency has scheduled a July 19 meeting to consider final rules related to whistleblowers and the process for reviewing swaps for clearing.
Dodd-Frank, the financial overhaul enacted last July, seeks to reduce risk and boost transparency after largely unregulated trades helped fuel the 2008 credit crisis.