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GAOU.S. GOVERNMENT ACCOUNTABILITY OFFICE
441 G St. N.W.
Washington, DC 20548
B-325438
February 18, 2014
The Honorable Debbie Stabenow
Chairman
The Honorable Thad Cochran
Ranking Member
Committee on Agriculture, Nutrition, and Forestry
United States Senate
The Honorable Frank D. Lucas
Chairman
The Honorable Collin C. Peterson
Ranking Member
Committee on Agriculture
House of Representatives
Subject: Commodity Futures Trading Commission: Prohibitions and Restrictions on Proprietary
Trading and Certain Interests in, and Relationships with, Hedge Funds and Private
Equity Funds
Pursuant to section 801 (a)(2)(A) of title 5, United States Code, this is our report on a major rule
promulgated by the Commodity Futures Trading Commission (CFTC or the Commission)
entitled Prohibitions and Restrictions on Proprietary Trading and Certain Interests in, and
Relationships with, Hedge Funds and Private Equity Funds (RIN: 3038-AD05). We received
the rule on December 30, 2013. It was published in the Federal Register as a final rule on
January 31, 2014. 79 Fed. Reg. 5808. The final rule is effective April 1, 2014.
The final rule implements section 619 of the Dodd-Frank Wall Street Reform and Consumer
Protection Act (the Dodd-Frank Act), which contains certain prohibitions and restrictions on the
ability of a banking entity and nonbank financial company supervised by the Board of Governors
of the Federal Reserve System (the Board) to engage in proprietary trading and have certain
interests in, or relationships with, a hedge fund or private equity fund. Section 619 also requires
the Board, the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of
the Currency (OCC), and the Securities and Exchange Commission (SEC) to issue regulations
implementing section 619 and directs CFTC and those four agencies to consult and coordinate
with each other, as appropriate, in developing and issuing the implementing rules, for the
purposes of assuring, to the extent possible, that such rules are comparable and provide for
consistent application and implementation. To that end, although the Commission adopted a
final rule that is not a joint rule with the other agencies, CFTC and the other agencies have
worked closely together to develop the same rule text and supplementary information, except
for information specific to CFTC or the other agencies, as applicable. In particular, CFTC's final
rule is numbered as part 75 of the Commission's regulations, the rule text and this report refer to
the Commission instead of the [Agency] and one section of the regulations addresses
authority, purpose, scope, and relationship to other authorities with respect to the Commission.
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