The Commodity Futures Trading Commission will seek public input on simplifying and modernizing its rules and rulemaking process.
Acting Chairman J. Christopher Giancarlo initially announced Project KISS, which stands for “Keep It Simple, Stupid,” in March as an agency-wide internal review of CFTC rules, regulations, and practices. The goal, he said, was to identify those areas that can be simplified to make them less burdensome and less costly.
On May 3, the CFTC announced that it is seeking ideas from industry, other stakeholders and interested parties, and the broader public on where how rules can be improved.
Giancarlo cautioned, however, that this exercise is not about identifying existing rules for repeal, or even a rewrite. It is about taking CFTC’s existing rules as they are and applying them in ways that are simpler and less burdensome.
“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,” Giancarlo said. “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 added.
On Feb. 24, President Donald J. Trump issued an executive order that instructed federal agencies to designate a Regulatory Reform Officer and a Regulatory Reform Task Force. While the CFTC is not directly covered by the President’s order, Giancarlo said the agency will engage in a similar review.
He designated Chief of Staff Michael Gill as CFTC’s Regulatory Reform Officer, who has been leading Project KISS and the work of the taskforce within the agency.
Members of the public can submit their ideas and suggestions by emailing firstname.lastname@example.org or visiting cftc.gov/projectkiss.
Any rule change recommendations will be pursuant to the provisions in the Administrative Procedures Act. All comments and submissions will be posted on cftc.gov. Unsigned or inappropriate comments will not be posted.