I guess taking an MFGlobal “blasting” on behalf Gary Gensler gets old after a while even when he’s conveniently “out of the country.”
Hedge Funds Review published an article on February 11, 2013 which was essentially an article about another article that was behind a paywall at the Energy Risk division of Risk.net. The article by Alexander Osipovich was titled Sommers blasts CFTC’s approach to Dodd-Frank. All the “blasting” that Jill Sommers has done (and had done to her) isn’t lost on Dave.
Way back on August 29, 2011 the press was describing Commissioner Sommer’s approach to the CFTC’s mission of ensuring integrity by describing Jill’s metaphorical dynamite as a ensurance solutions approach in their CFTC’s Sommers blasts decision on FIA-ISDA project report.
In the February 11 Hedge Fund Review article on an article in Energy Risk, the author wrote:
The US Commodity Futures Trading Commission (CFTC) has imposed unnecessary hardships on derivatives market participants by forcing them to comply with complex Dodd-Frank stipulations before they had time to adapt, according to outgoing CFTC commissioner Jill Sommers.
“Everybody is scared to death that if they’re not in compliance, then we’re going to file an enforcement action,” says Sommers, who is planning to leave the commission at the end of March.
“We have spent the past six months basically writing no-action letters and listening to market participants tell us they’re not ready,” she says.
The CFTC should not have required any firm to be compliant until the Dodd-Frank rule-making process was complete, she adds. At present, several important rules are yet to be finalised, including those on swap execution facilities (Sefs), margin requirements for uncleared swaps and capital requirements for swap dealers.
Ms. Sommers resigned from her position on January 24 but will not leave the commission until March and expects to vote on the Sef rules. When asked why she was leaving the CFTC and what she expected to be doing, she said;
“Our workload has increased exponentially,” she says. “I’m just ready to move on to a new challenge – hopefully something that’s not quite as demanding.”
Dave commentary: So Congress writes a new law and then the CFTC spends a few years defining swaps and then when your industry is unable to comply with the new definition of swaps you write some letters telling them that you won’t enforce the new rules and in the meantime the energy traders simply “swapify” themselves into a new futures market rendering the entire CFTC effort as moot. Heck of a job.