President Trump’s Market ‘Rules’ Revamp Coming Real Soon
- The Trump Administration is set to release its road map for overhauling regulation of US markets
- It will be an expansive list of priorities that touches on the stock, bond and derivatives trading.
- The Sarbanes-Oxley Act of 2002 and the Dodd-Frank Act of 2010 are the focus
- The report, being prepared by the US Treasury Department, could come as early as Friday.
Rather than making specific demands, the document is meant to be a road map for agencies as they streamline rules, the people said.
While some of the changes will require congressional action, most could be accomplished by re-writing regulations.
The markets review was spurred by President Donald Trump’s February executive order calling for a broad rethink of financial regulations.
The US Treasury issued a separate report on bank oversight reforms in June, and another on asset managers is set to be released in the coming days.
The suggestions in the markets study are likely to be embraced by the financial industry, as Democratic lawmakers and investor advocates are expected to oppose the recommendations.
They have been critical of The Trump Administration’s attempts to cut Wall Street regulations, especially those enacted in response to the financial crisis.
Do not expect the report to seek a wholesale rollback, as it will propose adjustments to rules stemming from 2 laws that tightened capital markets oversight, the Sarbanes-Oxley Act of 2002 and the Dodd-Frank Act of 2010.
Both agencies saw their oversight roles expanded by Dodd-Frank, with the CFTC being given responsibility for policing the massive over-the-counter derivatives market. The 2 Chairmen appointed by President Trump are aligned with the administration’s goal of dialing back some of those rules, as they are unnecessarily complex.
Treasury also plans to recommend that the CFTC and SEC work better together, particularly in monitoring derivatives markets. The report will likely make recommendations on each agency’s jurisdiction in that area, according to the people.
Craig Phillips, a former BlackRock Inc. executive who was major fundraiser for Hillary Clinton’s presidential campaign, has been leading the Treasury’s regulatory review. He is now a senior adviser to Secretary Steven Mnuchin.
Spokesmen for US Treasury, the SEC and the CFTC declined to comment or could not be reached this morning.
Have a terrific weekend.