10.27.2011

|

Updates

The CFTC Proposes Again Extending the Effective Date of Certain Dodd-Frank Provisions

On Tuesday, October 25, 2011, the Commodity Futures Trading Commission (the "CFTC") issued a notice of a proposed amendment to a July 14, 2011 final order (the "July 14th Order").  The July 14th Order grants temporary exemptive relief from certain provisions of the Commodity Exchange Act (the "CEA") that otherwise would have taken effect on July 16, 2011, the general effective date of title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act").

The July 14 Order grants temporary relief in two parts:  

  • The first part addresses those CEA provisions added or amended by title VII of the Dodd-Frank Act that reference one or more terms regarding entities or instruments that title VII requires be "further defined" to the extent that requirements or portions of such provisions specifically relate to such referenced terms and do not require a rulemaking.
  • The second part, which is based on part 35 of the CFTC’s regulations, addresses certain provisions of the CEA that may apply to certain agreements, contracts, and transactions in exempt or excluded commodities as a result of the repeal of various CEA exemptions and exclusions as of the general effective date of July 16, 2011.

The current proposed amendment (i) would extend the potential latest expiration date of the July 14 Order to July 16, 2012, or such other compliance date as may be determined by the CFTC, and (ii) would add provisions to account for the repeal and replacement (as of December 31, 2011) of part 35 of the CFTC’s regulations.

© 2011 Perkins Coie LLP


 

Sign up for the latest legal news and insights  >