Craig Donohue, CEO of the Chicago-based CME Group, has blasted the Dodd-Frank Wall Street Reform Act regulatory changes and demanded a delay in the law’s implementation.
Donohue recently sent a letter to the Commodity Futures Trading Commission warning that the act’s rule-making process is flawed and will be subject to legal challenges, according to ChicagoBusiness.com.
Dodd-Frank rules related to derivatives exchanges, among other new regulations, have a major impact on the CME, which operates the largest U.S. futures market.
In his seven page letter from Monday, Donahue wrote that the CFTC’s cost benefit analyses’ are “cryptic and rote and fail to quantify any specific impacts to the industry or even more generally assess the potential detrimental effects such changes will have on the U.S. futures markets,” ChicagoBusiness.com reports.
The CFTC has already missed several deadlines for implementing the new regulations and its cost-benefit analyses have been critiqued by Commissioner Jill Sommers and in an inspector general report.
According to Donahue, there is an overall effort to shove the largely self-regulating industry more firmly under government control.
The new law "was not intended to give the commission authority to override the principles-based regulatory regime with a multitude of prescriptive rules dictating not only how registered entities comply with applicable core principles, but also how they conduct their day-to-day business operations," Donohue wrote, according to ChicagoBusiness.com.
Many of the rules in Dodd-Frank, Donahue wrote, will drive U.S. trading to other countries whose markets do not have such regulations.