Wetjen Advocates Legal Advice Before Interim Expiration

Wetjen Advocates Legal Advice Before Interim Expiration

The Commodity Futures Trading Commission’s interim relief for cross-border swaps is due to expire on July 12th, but in a speech at a London Futures Industry Associated expo, CFTC Commissioner Mark Wetjen made it clear he thinks the CFTC should provide legal advice and assurance until that point.

The approach Mark Wetjen advocated for is purportedly to ease the transition into the time after the relief expires. Furthermore, by including coordination with internal and international regulatory bodies, firms could adapt to the new compliance model before the deadline. Wetjen echoed the concerns many have had about the regulatory policy, and mentioned that the cross-border guidance must be ‘clear and workable.’

In the address, Wetjen outlined three very clear objectives that he hoped to achieve with this relief and guidance. The first was to protect the US taxpayer and financial systems, and cited the mobility of risk associated with derivatives and the need for global regulation to monitor this mobility. The second objective is to protect the US financial system but also not stifling competition. Lastly, Wetjen hopes that this period of transition will ensure the policy is unambiguous, and gives firms a reasonable time period for compliance.

With the current relief package expiring July 12, Wetjen also hoped to have final guidelines released before the deadline, and open it up for comment.

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About The Author


Felix Shipkevich

Felix Shipkevich

Mr. Shipkevich’s practice focuses on regulatory, transactional, and enforcement matters in the fields of futures, commodities, and derivatives. He works with Futures Commission Merchants (FCMs), Retail Forex Exchange Dealers (RFEDs), Introducing Brokers (IBs), Commodity Pool Operators (CPOs), Commodity Trading Advisors (CTAs), Swap Dealers (SDs), Swap Execution Facilities (SEFs), and domestic and offshore hedge funds. Mr. Shipkevich guides clients on procedures related to registration with the U.S. Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA), as well as domestic and international regulators in local jurisdictions. Mr. Shipkevich prepares and helps implement compliance, anti-money laundering (AML), and Electronic Trading Systems (ETS) procedures for clients in the commodities and derivatives fields.

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