Statement of Chairman Timothy Massad on the Notice of Proposed Rulemaking to Amend Regulation 1.31

January 12, 2017

I have said many times that it is important for the CFTC to ensure its rules are up-to-date in light of technological changes, as outdated rules can create unnecessary burdens. That is why I’m pleased we are unanimously issuing this proposed rulemaking, which is in keeping with that goal.

Today’s proposal will modernize recordkeeping and storage obligations set forth in CFTC rules, and make them technology neutral. By doing so, it will reduce costs for businesses and improve the quality of record preservation and production. Among other things, the proposal will provide greater flexibility when it comes to how records must be retained and produced. In this age where terabytes of storage easily fit in one’s pocket, our rules should not refer to microfiche or require paper records.

Today’s proposal is also an example of how the Commission is focusing on issues related to technological change generally in our markets. In this regard, there is much talk today about innovations that may come from financial technology. While it is the role of the private sector to develop innovations, I believe it is our role to ensure that the Commission’s rules do not stand in the way of their potential. Today’s proposal is a way to do just that.

I thank the CFTC staff for their work on this proposal and my fellow commissioners for their support.

Last Updated: September 14, 2017