The countdown is on as the March 30, 2012 deadline for hedge fund and private equity managers to file their registration forms with the SEC, under the Dodd-Frank Act, is just around the corner. In reality though, most firms filed their Form ADV back in February to satisfy the 45-day review period.
However, the Dodd-Frank Act continues to spark change and much debate throughout the financial services industry. Just today the U.S. Commodity Futures Trading Commission (CFTC) “completed Dodd-Frank Act rules requiring swaps brokers to decide within minutes whether to clear a trade in an effort to reduce risk in the $708 trillion global swaps market,” according to Bloomberg news.
Dodd-Frank also requires that swap entities establish and maintain written business continuity and disaster recovery plans designed to enable them to resume operations with minimal disturbance to counterparties and to recover all required documentation and data.
Not every deadline has been met. Law firm Davis Polk publishes a monthly Dodd-Frank Rulemaking Progress Report “to help market participants and policymakers assess the progress of the rulemaking and other work that has been done by regulators under the Dodd-Frank Act.” Following is a peek at the findings from the March 2012 report:
As of March 1, 2012, a total of 225 Dodd-Frank rulemaking requirement deadlines have passed. This is 56.3% of the 400 total rulemaking requirements, and 78.7% of the 286 rulemaking requirements with specified deadlines.
Of these 225 passed deadlines, 158 (70.2%) have been missed and 67 (29.8%) have been met with finalized rules. Regulators have not yet released proposals for 24 of the 158 missed rules.
Of the 400 total rulemaking requirements, 99 (24.75%) have been finalized and 154 (38.5%) have been proposed. 147 (36.75%) rulemaking requirements have not yet been proposed.
The following graphic shows the progress by agency:
The exact impact of Dodd-Frank will not be known for a while, but speculation is sure to continue. At Eze Castle Integration we are focused on helping hedge funds and alternative investment firms cope with the technology requirements, including disaster recovery plans and systems, that come with Dodd-Frank.