Mark your calendar for Barclays' compliance with CFTC order

The CFTC issued an order on June 27, 2012, requiring Barclays to implement numerous undertakings aimed at strengthening the reliability of its submissions to the calculation of LIBOR.  Barclays must establish policies, procedures, and controls not later than August 27 to assure compliance with the order.  For example, every six months Barclays is required to conduct an internal audit of the basis for its LIBOR submissions and each year the bank must retain an independent auditor to review its submissions.  Barclays must report to the Commission every four months, starting 120 days from the date of the order, on its progress toward compliance with the order.  A report explaining Barclays' compliance -- with copies of the relevant controls, procedures, and policies -- is due within 365 days of the order.

This case is a landmark in the enforcement of the Commodity Exchange Act.  The CFTC thus has a unique opportunity to demonstrate its commitment to following through on its enforcement program.  I have marked my calendar to check with the CFTC on Barclays' submissions, so that we may have a real-time view into the mechanism of post-judgment supervision by the agency.  I will report the progress and results of these observations in this space.