The Commodity Futures Trading Commission (CFTC), the primary US regulator of the more than $600 trillion derivatives markets, is currently operating with only two commissioners, one from each political party, as of June 1. Without Senate confirmation of additional nominees, the agency may soon be left with a single commissioner. This reduction in leadership could limit the CFTC’s ability to carry out its regulatory responsibilities over key financial markets.
In an article for Bloomberg Law, Milbank LLP Litigation & Arbitration partner Joshua Sterling and special counsel Amanda Olear discuss the potential regulatory implications of the CFTC’s reduced leadership. They underscore the importance of the derivatives markets and the significant roles they play in areas such as commodity pricing, energy, mortgage rates and retirement savings. With the Commission currently at a 1-1 partisan split and with one of those seats already expired, the authors emphasize the importance of restoring a quorum to support effective market oversight.
Read "CFTC Vacancies Put US Financial Markets at Risk of Neglect" here.
