Post-crisis rules have created new challenges for Trump-appointed regulators as they look at recalibrating the financial rule book, but the vast majority of the 2010 Dodd-Frank Act isn’t going anywhere, Securities and Exchange Commission Chairman Jay Clayton said yesterday, the Wall Street Journal reported. Clayton said that regulators are evaluating how post-crisis rules have performed in practice, and that he had concerns about some of the unintended side effects from some regulations. But any changes will be around the edges, keeping the core of post-crisis overhauls in place, he added. One area Mr. Clayton singled out for rule changes are clearinghouses, which act as middlemen between the buyers and sellers of financial instruments such as commodities and derivatives. Clearinghouses are seen as a possible threat to financial stability, given how rapidly they have grown since Dodd-Frank mandated the routing of more transactions through them. He didn’t offer any potential suggestions as to how to deal with supersized clearinghouses, also known as central counterparties, but said they are a common topic of discussion when international regulators list potential risks to financial stability.
