Most of Dodd-Frank will remain intact, SEC chairman says

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WASHINGTON — Postcrisis 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 Monday.

Speaking at The Wall Street Journal’s CFO Network annual meeting in Washington, Clayton said that regulators are evaluating how postcrisis 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 postcrisis overhauls in place, he added.

“I don’t think Dodd-Frank is changing a great deal, just to put a pin in it,” he said.

One area 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.

An expanded version of this report appears on WSJ.com.

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