CFTC Reopens and Extends Comment Periods for Rulemakings Implementing the Dodd-Frank Wall Street Reform and Consumer Protection Act

Investment Funds Update

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On May 4, 2011, the Commodity Futures Trading Commission (the "CFTC") reopened or extended the comment periods for substantially all of its proposed rules implementing the derivatives reforms of the Dodd-Frank Wall Street Reform and Consumer Protection Act ("Dodd-Frank")1 to provide market participants and others with an additional opportunity to comment on the CFTC's Dodd-Frank rulemakings in their entirety. Closed comment periods were reopened and comment periods that were open but that were scheduled to close prior to June 3, 2011 have been extended until June 3, 2011. The CFTC has also requested comment by June 3, 2011 on the order in which it should finalize its Dodd-Frank rules.

Reopening and Extension of Comment Periods

Since Dodd-Frank was enacted on July 21, 2010, the CFTC and other regulatory agencies have proposed rules implementing the sweeping regulatory changes mandated by the legislation,2 and the CFTC has now proposed substantially all of its rules implementing the CFTC's regulatory framework for swaps under Dodd-Frank. Given this substantially complete framework for the regulation of swaps, the CFTC believes market participants and others may have additional insight into the intersection of any combination of these proposed rules, or on the proposals from a global perspective. Accordingly, the CFTC is reopening or extending the comment period for substantially all of its proposed rules implementing Title VII of Dodd-Frank. The CFTC has specifically requested comments on the costs and benefits of the proposed rules and in particular has requested additional quantitative or qualitative information relating to the costs and benefits of the proposed rules. Finally, the CFTC is also requesting comment on the order in which it should finalize its Dodd-Frank derivatives rulemakings.

Comments

All comments on the CFTC’s proposed rules implementing Title VII of Dodd-Frank that were received after the close of the originally established comment periods will be treated as if they were received during the reopened comment periods and need not be resubmitted.

Effective Dates

For CFTC proposed rules for which the comment period was closed as of May 4, 2011, the comment period is reopened until June 3, 2011. For CFTC proposed rules for which the comment period closes between May 4, 2011 and June 3, 2011, the comment period is extended to June 3, 2011. The comment period of any proposed rule that closes after June 3, 2011 will remain open until the originally published closing date. The comment period regarding the order in which the CFTC should consider final rules will be open until June 3, 2011.

If you wish to submit a comment on any of the proposed rules implementing the CFTC’s regulatory framework for swaps under Dodd-Frank, or if you have any questions regarding this update, please contact the Sidley Austin lawyer with whom you have regular contact.

1 76 FR 25274, Reopening and Extension of Comment Periods for Rulemakings Implementing the Dodd-Frank Wall Street Reform and Consumer Protection Act, (May 4, 2011), available at http://www.gpo.gov/fdsys/pkg/FR-2011-05-04/pdf/2011-10884.pdf.

2 Dodd-Frank Wall Street Reform and Consumer Protection Act, Public Law 111-203, 124 Stat. 1376 (2010), available at http://www.cftc.gov./LawRegulation/OTCDERIVATIVES/index.htm.

The Investment Funds Practice of Sidley Austin LLP

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