It’s preposterous. There’s no problem that’s getting addressed with this solution, this is a solution in search of some problem.
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Securities and Exchange Commission and Related Agencies
register with the Commodity Futures Trading Commission (CFTC) as aswap execution facility (SEF) under Sections 2)” and 5h” of the CEA. Currently, it is not clear whether having one or a small number of U.S. participants would require SEF registration under prior staff guidance, which has led foreign swap trading platforms to exclude all U.S. persons from their platforms or to go through the process of seeking an exemption from registration.
Amend Section 2 of the CEA to authorize the CFTC Chairman to remove the agency’s Executive Director without a Commission vote.
To augment Commissioners’ independence, establish funding amounts for the Commissioners’ offices by statute with adjustments for inflation, with no requirement for a Commissioner to obtain budget or expense approvals from the Chairman or the agency’s administrative staff.
The CFTC should:
Allocate more resources to core agency functions rather than ancillary and support operations.
Replace the existing position limits rule, which reduces liquidity and makes markets more volatile, with further delegation of authority to the exchanges to set position limits and position accountability levels where appropriate for the relevant market.
Reduce overly prescriptive rules implementing the CFTC’s core principles.
Apply the definitions of “U.S. Person” and “Guarantee” in the CFTC’s 2020 rule on cross-border application of swaps regulations (2020 Cross-Border Rule)” to the regulatory requirements that remain covered by the CFTC’s 2013 guidance on the subject (2013 Guidance).*° Currently, the definition of each of these foundational terms differs depending on whether the requirement in question is covered by the 2020 Cross-Border Rule or the 2013 Guidance.
Remove the regulatory categories of “affiliate conduit” and “foreign consolidated subsidiary” from the 2013 Guidance and the CFTC’s crossborder rule on margin for uncleared swaps,” respectively. These categories were replaced by the concept of a “Significant Risk Subsidiary” for purposes of the 2020 Cross-Border Rule because of widespread market confusion and compliance difficulties arising from their broad and vague scope.