The US Commodity Futures Trading Commission has amended and simplified its regulations that govern chief compliance officers' duties and annual compliance reporting requirements for futures commission merchants, swap dealers and major swap participants, many of which are private banks. President Trump's 'one in, two out' rule appears to be at work here.

The amendments also make chief compliance officers' duties clearer by "providing reasonable standards and guidance on effective compliance." They also modify the CCO annual report content and submission requirements to make it easier for CCOs to prepare their reports while also, in the CFTC's eyes at least, making the reports more effective. The regulator believes that these amendments are another step towards the synchronisation of its CCO regulations with the regulations issued by the Securities and Exchange Commission for security-based swap dealers. The further convergence of the two regimes will, according to both regulators, make the markets more efficient.

On 3 May last year, influenced no doubt by President Trump's Executive Order 13771 of 30 January 2017, which stated that "for every one new regulation issued, at least two prior regulations be identified for elimination," otherwise known as the 'one in, two out' rule, the CFTC decided to ask the public about how it might simplify its rules. The result was 'Project KISS,' whose brief is to make CFTC rules simpler.

The Final Rule on Chief Compliance Officer Duties and Annual Report Requirements for Futures Commission Merchants, Swap Dealers, and Major Swap Participants has now been passed. Under ss4s(k)(2) and (3) Commodities Exchange Act, CCOs of registered swap dealers must prepare and sign annual compliance reports. Section 4d(d) requires CCOs of futures commission merchants to “perform such duties and responsibilities” as are established by the CFTC's regulations or by the rules of a registered futures association.