Risk Desk Editor Predicts Busy Autumn For The CFTC

In the latest installment of "Drums along the Potomac," The Risk Desk editor John Sodergreen discussed regulatory developments concerning the CFTC capital requirements rule and Regulation Automated Trading ("AT") proposals.

Mr. Sodergreen observed that the CFTC capital requirements proposal was written over five years ago and has yet to be adopted. He highlighted Chair Massad's recent keynote speech announcing his intention to resolve issues surrounding the de minimis swap dealer threshold. Mr. Sodergreen predicted that Chair Massad ultimately will favor policy that requires the CFTC to issue subpoenas before requesting source code.

Mr. Sodergreen noted that the national election, time of year and current political climate create pressure for regulators to produce and announce results. He predicted that Mr. Massad will be "hard-pressed" to complete his regulatory agenda by the end of the current administration's tenure and advised readers not to "anticipate too