While it is clear that the CFTC Commissioners are enthusiastic about playing a role in climate change, that role should be limited. In the case of carbon markets that are regulated by the CFTC, the CFTC has an obligation to understand how price discovery in those markets works so that it can regulate trading and be on the lookout for improper trading activities. It is not apparent why the CFTC would deem it necessary to mandate "climate risk disclosure" by CFTC registrants. The CFTC should…

"Climate change" is not a hypothetical; it is the basis for a hypothetical.

If the risk is a rise in temperature, by how much and what environmental or social changes are caused by the rise in temperature? Without some specification of the hypothetical, issuers' risk disclosures will inevitably be based on radically different assumptions, all of which may be entirely reasonable. If the risk to be disclosed is a change in law, what laws?

These are two very different risks. Take…

The rule amendments and interpretations at issue were adopted on party-line votes. At the time, the Democrats (or the lone Democrat, in some instances) on the Commission dissented. While the policy of the rule changes may have been disputed, the changes themselves were properly adopted in accordance with the requirements of the Administrative Procedures Act (or at least there is no suggestion otherwise). Thus, from an administrative law standpoint, it seems an unusual act by the Chair,…

Presumably, NASAA expressed concern that the rule amendments would facilitate expungements of information to which NASAA objected.