One of the chief US financial regulators, the US Commodity Futures Trading Commission (CFTC), announced it is looking into public input on simplifying its rules. The effort is aiming to modernize the rule structure and is part of a broad effort called Project KISS, which stands for “Keep It Simple, Stupid.”
Earlier this year an executive order signed by Donald J. Trump mandated all federal agencies to explore how to simply their rules. KISS is aiming to conduct an internal review and come up with cost efficiencies and reduce regulatory red tape where possible. The effort is not part of a major regulatory overhaul, but rather an optimization effort of existing rules.
Costs Optimization in Application of Existing Rules
The US CFTC is asking for public input on which parts of the agency’s regulations can be reshaped, optimized and how can the regulatory framework be applied more efficiently. Industry, other stakeholders and interested parties as well as the broader public are welcome to submit their views on how to simplify CFTC’s rules can be simplified and make regulatory adherence less costly.
According to CFTC’s Acting Chairman Giancarlo existing rules of the CFTC will not be rewritten, nor there will be new rules. The process is aimed at taking CFTC’s existing rules as they are and applying them in ways that are simpler in a way that they reduce regulatory burden for the supervised companies.
Public submissions can be made by emailing the CFTC on email@example.com or visiting cftc.gov/projectkiss.
Commenting on the effort Acting Chairman Giancarlo said: “At times the CFTC rules are unnecessarily complex, and the harder they are to understand and costly to follow, the less dynamic and vibrant these markets become.”
“When that happens, goods we buy like groceries, heating oil and airline tickets get more expensive because their production prices cannot be easily hedged. Industry will still have to comply with CFTC rules and Congressional laws, but we need to be able to do so in a way that makes sense and reduces regulatory burdens,” he explained.
Source: Finance Magnates