The CFTC granted Wall Street a short extension on Monday, as federal regulators move to discretely postpone a set of Dodd Frank rules.
When the CFTC approved the extension, it went undetected. In a statement Monday, the CFTC highlighted how it approved a collection of new rules that would shed light upon the derivatives market, one of the cloudiest markets on Wall Street.
However, a handful of extensions were hidden within the 254 page rule. The Commission reached the decision discretely behind closed doors.
The CFTC acknowledged that the extensions were requested by members of the financial industry. Members of the International Swaps and Derivatives Association have urged the CFTC to consider postponing the compliance dates of several key rules.
Wall Street now has until January 1st, instead of October, to comply with a batch of new standards. For example, firms will now have more time to verify that their trading partners meet certain “eligibility standards” and to ensure that they recommend trading strategies that are “in the best interests” of their clients.
While the extension will not alter the end goal of Dodd Frank, critics argue that Wall Street now has plenty of time to come into compliance with the new rules.
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Photo credit: Jamiesrabbits
