Woodlake Commodity Solutions Releases Remarks on CFTC Law Restructuring

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Just recently, the Commodity Futures Trading Commission (CFTC) has embarked on a drastic streamlining of the Over-the-Counter derivatives markets, a critical decision that even regular consumers make it hard to fathom the potential impact of the new rules.

London, United Kingdom., February 4, 2013 - (PressReleasePoint) - In lieu to this, Mr. Robert Denington, Woodlake Commodity Solutions’ Compliance Officer said that this year’s market activities denoted a fresh pattern and standard in government regulation in United States.  Mr. Robert Denington further said that it is important for the private sectors to recognize things in the last year trading compliance and activities as acceptable but in the current year, it leaves to be unpredicted due to radical changes in regulatory and compliance matters.

“As a registered commodity brokerage firm, one of our major focuses is compliance.  This simply means that we do not only concentrate on fund raising strategies, trading advices and account structuring.  With the new US CFTC legislation, our firm is made aware that we must also focus on the legislation compliance, which means you come to us to discuss how a certain project is complying with the new legislation. We are now made aware that the new change in the OTC derivative market would potentially generate an entirely new approach on how trading principals could lawfully define what an actual asset is,” said Robert Denington.

Based on the 2010 Dodd-Frank Act, the CFTC’s tight schedule allows anymore no market participants to have sufficient time to completely estimate the impact of the new rules and propose significant comments. Since August 2010, the CFTC has circulated more than 40 rule proposals, accumulating 975 Federal Register pages and plans to deliver the total of its Dodd-Frank Rule Proposals on March of the current year.  Based on the given comment period for each proposed rule which will only last for 30 to 60 days, the comment periods would consecutively run for 2,514 or seven years. Nevertheless, the CFTC is still facing impracticable legislative deadline of rule-making process completion within 360 days from the very first date that President Barrack Obama has signed the law in July 20, 2010.

President Obama’s latest executive order on improving Regulation and Regulatory Review cautions the entire project principals to consider the costs of collective regulations which can be completed by carrying out thorough cost-benefit analyses  in outlining rule proposals.  While the recent executive order does not cover independent agencies like CFTC, this must not be considered as a good excuse for not properly working on cost-effective regulations.

On the other hand, Woodlake Commodity Solutions’ Compliance Officer has also noted that the US congress has authorized the same requisites under Commodity Exchange Act. Thus the very first move in complying with the proposed rule is for the commission to enhance first its capacity to evaluate the factual costs of each rule under the Dodd-Frank Act.  “Each and every proposed rule would critically affect how private sectors would be able to approach the market, thus, every project principal should seek guarantee based compliance solutions to counter the ever changing markets,” said Mr. Robert Denington.