Contributor: Stephen Nimmo

When the CFTC releases each new Dodd-Frank (DFA) rule, the agency starts with an overview describing the rule’s purpose. To paint the picture, here is a snippet of the CFTC’s overview summarizing the reasoning behind the DFA in its entirety: “The legislation was enacted to reduce risk, increase transparency, and promote market integrity within the financial system by, among other things: (1) Providing for the registration and comprehensive regulation of swap dealers and major swap participants; (2) imposing clearing and trade execution requirements on standardized derivatives products; (3) creating robust recordkeeping and real-time reporting regimes; and (4) enhancing the Commission’s rulemaking and enforcement authorities with respect to, among others, all registered entities and intermediaries subject to the Commission’s oversight.”... read more