CFTC again delays vote on swaps market regulation rule

The Commodity Futures Trading Commission again delayed a vote on a rule that would tighten regulations in the swaps market in order to more clearly determine which banks and energy companies would be subject to the rule.

Both the CFTC and the Securities and Exchange Commission, set to vote Thursday on the measure, announced the delay on Tuesday.

“The SEC pulled it for a variety of reasons,” a CFTC official said, Reuters reports. “I think there [are] still some questions among the commissioners. It wasn’t a dispute between us and them so it’s a ‘them’ issue. They let us know this weekend.”

The swaps market is used by companies to lock in energy costs, a tactic used by large commodity organizations like BP and Shell. These organizations argue that they should be exempt from the rule, as their use of swaps is necessary to protect the companies from major currency and price fluctuations.

Tuesday’s delay is just one of many involving the implementation of Dodd-Frank rulings. Less than one-quarter of the 400 Dodd-Frank rulemakings have been finalized and implemented as of the end of January. The CFTC has only finalized about 25 regulations and is months behind in implementing many Dodd-Frank rules, Reuters reports.

Some critics of Dodd-Frank claim that the overhaul is too weak and unlikely to resolve America’s too-big-to-fail problem. SEC Commissioner Roberta Carmel, in an interview with Bloomberg Law, said that the financial industry “has moved away from holding people responsible for business failure.”

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