“CFTC Issues Releases Covering Market Manipulation and Disruptive Trading Practices”
The Commodity Futures Trading Commission (the “CFTC”) recently issued two proposed rules (the “Proposed Rules”) and an Advance Notice of Proposed Rulemaking (the “Advance Notice”) under Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”). Under Title VII of the Dodd-Frank Act, the CFTC’s anti-manipulation authority and authority to prohibit disruptive trading practices are expanded and the CFTC is required to implement certain of these provisions by rulemaking.
The Proposed Rules, issued on November 3, 2010, constitute the CFTC’s planned implementation of its anti-manipulation authority under Section 753 of the Dodd-Frank Act. The Advance Notice, issued on November 2, 2010, solicits comments on all aspects of Section 747 of the Dodd-Frank Act, which prohibits certain disruptive trading practices, and seeks responses to a number of specific questions with respect to the CFTC’s implementation of rules and regulations thereunder.
This Stroock Special Bulletin highlights the major provisions of the Proposed Rules and the Advance Notice.