The Senators also asked the CFTC to promptly reply to a series of questions, including why the agency did not extend the October 12 deadline for the rules and how the Commission intends to resolve in a fair and equitable manner requests for relief for non-compliance with the rules. They also ask if Treasury has made a final determination under Dodd-Frank on whether to exempt foreign exchange products from the swap definition and, as a corollary to that, what steps the CFTC has taken to minimize market disruptions until Treasury makes such a determination.
The Banking Committee members noted that a CFTC rule on the timing of acceptance for clearing recognizes differences in technological capabilities among market participants and applies a standard of as soon as technologically practicable. The CFTC staff has, however, indicated that it would interpret the rule as requiring a 60-second standard. The Senators asked the CFTC to clarify whether the as soon as technologically practicable standard or the 60-second standard is the governing standard.