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E-MailMargaret E. Tahyar is a partner in the Financial Institutions Group at Davis Polk & Wardwell LLP. This post discusses a Davis Polk report which is available here. A post about the previous progress report is available here. Other posts about the Dodd-Frank Act are available here.
This posting, the Davis Polk Dodd-Frank Rulemaking Progress Report, is the second in a new series of Davis Polk presentations that illustrate graphically the progress of the rulemaking work that has been done and is yet to occur under the Dodd-Frank Act. The Progress Report has been prepared using data from the Davis Polk Regulatory Tracker™, an online subscription service offered by Davis Polk to help market participants understand the Dodd-Frank Act and follow regulatory developments on a real-time basis.
In this report:
- April Deadlines: All Missed. Backlog Increases. April saw the nine-month anniversary of Dodd-Frank and, with that, the deadlines for all 26 rulemaking requirements in the second quarter of 2011. All were missed. The backlog of missed rulemaking requirements now stands at 30.
- Enormous Demands on Regulators. It has been clear since the passage of Dodd-Frank that the demands on the regulators are enormous and unprecedented. Pages 12 and 13 of this Progress Report quantify this burden by showing the number of proposed rules, interim final rules and concept releases the CFTC and SEC have released for public comment each day since January 1, 2009. While this measure does not distinguish between more and less important proposals, the increase over pre-Dodd-Frank work is clear.
- Dramatic Increase in CFTC Open Comment Periods. The number of open comment periods for CFTC rules, found on page 12, is particularly striking. From the beginning of 2009 until the passage of Dodd-Frank, the CFTC never had more than four rule proposals or concept releases out for public comment on any given day. In late December 2010, the CFTC had 31 rule proposals or concept releases out for public comment. Many of these comment periods have since closed, and CFTC staffers are undoubtedly busy reading through the resulting comments before finalizing rules. More missed deadlines are sure to result. As discussed in the full report, we expect to see similar patterns for the SEC and banking regulators as the deadlines for their rulemakings approach.
