Apr 12 2016
Washington—Senator Dianne Feinstein (D-Calif.) today expressed her objection to a provision in the recently-released Commodity Futures Trading Commission (CFTC) reauthorization legislation that would weaken existing rules for swap dealers.
Specifically, Feinstein opposes language that would keep in place the temporary threshold of $8 billion in swaps activity before a firm must register as a swap dealer. The threshold is currently set to be reduced to $3 billion at the end of 2017.
Feinstein and other senators have previously urged the CFTC not to raise the threshold.
“The CFTC has already issued a final rule on this threshold and any change to the scheduled reduction should be the result of formal rulemaking, justified by legitimate and detailed findings,” Feinstein said. “My colleagues and I have repeatedly voiced concerns that the long-term threshold may be too high for adequate energy market oversight. We have also yet to see compelling data that $8 billion is a sufficient threshold. Therefore, it makes no sense to further extend a period of reduced oversight, as this bill would do.”