Commodity Futures Trading Commission (CFTC) staff will revise Dodd-Frank extraterritoriality guidance published by the agency on June 29 in order to remove several errors and inconsistencies, sources say.
Although he guidance is intended to clarify the CFTC’s approach to implementing news swaps rules mandated by the Dodd-Frank Act, it contradicts itself in several places, leading to the need for changes.
The inconsistencies may be the result of events leading up to the document’s publication, when a stricter version favored by Chairman Gensler had to be quickly revised in order gain the support of other commissioners, including Jill Sommers, who described the first draft as “extra-statutory and extra-constitutional.”
Among the sections expected to be altered is related to the definition of “U.S. person,” which is a key determining factor in the application of other rules.
When contacted by Risk Magazine, a CFTC staff member acknowledged the issue and stated that the agency would edit the document.
