I left a comment over at Dealbook for the article A Step Toward Defining Derivatives Rules.
If this is the first step they’re taking with regard to swaps regulation, I’d say the CFTC is suffering from some serious ED.
Here’s my comment:
“The proposed plan seems flaccid. The issue has always been the ease of getting the exemption, not the classification of swap user. The “…user-friendly, check-the-box-approach…” still gives potential abusers lots of shadows to work within.
Without more stringent enforcement, exemptions look like they can still be given out like hall passes in grade school.”
This proposed regulation is a soft-off.