Who didn't see this coming? Last Wednesday, the CFTC announced that they would not be able to finish writing the rules they were mandated by Congress to write by July. They expect to have the rules written in six months. Personally, I am not surprised that the regulatory agencies are running behind. When Congress passed a bill that very few understood (much less actually read in its entirety) in order to appear 'Pro Main Street' hiccups are bound to happen.
According the WSJ New Financial Rules Delayed "Half of the 387 sets of rules have yet to be proposed"
"Last year's Dodd-Frank financial overhaul charged the SEC and the Commodities Futures Trading Commission with writing dozens of new rules creating a new regulatory regime for over-the-counter derivatives, but the agencies haven't finished writing most of the new regulations." from WSJ - SEC to Delay Some Swaps Rules Ahead of July 16 Deadline.
One thing is clear...new rules will likely be challenged in the Supreme Court if they are not properly written. Rushed rule-making will likely contribute to the problem of regulation rather than contribute. If proposed funding cuts are enacted for the SEC and CFTC we will likely see further delays and inadequate enforcement, but I will leave that for another post.
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