CMC Challenges CFTC On Tape Recording Requirement

CMC organized a coalition of groups to challenge the CFTC’s proposed tape recording regulation in a lengthy meeting with CFTC staff this week.  The proposal requires ALL members of a designated contract market or registrants of a swap execution facility to record (and retain for up to 5 years) ALL oral communications that lead to the execution of a trade in a commodity interest or cash commodity.

Not only does CMC believe the CFTC has failed to do an adequate cost/benefit analysis as required by law, but we believe the regulation exceeds the legal authority of the Commission over cash transactions.  We detailed our legal and practical arguments in a comment filed in August.

The CFTC is still taking comments on the proposal.  To submit additional comments, please email Peter Kals at


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