On June 28, the CFTC issued proposed rules to enhance its identification of participants in futures and swaps markets regulated by the CFTC. The proposed rules will also automate the CFTC’s existing position and transaction reporting programs by requiring electronic submission of trader identification and market participant data. Comments must be submitted within 60 days of publication in the Federal Register. CFTC Release.
Proposed Rules
Fed Proposed Rules for Reserve Banks and Depository Institutions
On October 11, the Fed proposed rules to amend Regulation D (Reserve Requirements of Depository Institutions) and Regulation J (Collection of Checks and Other Items by Federal Reserve Banks and Funds Transfers through Fedwire). The proposed rules are intended to simplify the administration of reserve requirements and reduce administrative and operational costs for depository institutions and Reserve Banks. Comments must be submitted within 60 days after publication in the Federal Register. Fed Release. Proposed Amendment to Reg D. Proposed Amendment to Reg J.
CFTC Proposed Rules on Capital Requirements for Swap Dealers and Major Swap Participants
Under the CFTC proposed rules, asset managers would face capital requirements for swap dealers or major swap participants that are not futures commissions merchants and are not nonbank subsidiaries of U.S. bank holding companies. Please see item above.
CFTC Proposed Rule on Protection of Cleared Swaps Customer Contracts and Collateral
On April 27, pursuant to Section 724(a) of the Dodd-Frank Act, the CFTC proposed rules concerning the protection of cleared swaps and associated collateral of futures commission merchants (FCM) customers. Among other items, the rules: (i) parallel the regulations governing the account in which FCMs currently hold futures customer collateral pre-bankruptcy and (ii) contain analysis of the costs and benefits of the four models of protection being considered, as described in the ANPR issued by the CFTC on November 19, 2010. CFTC Fact Sheet. CFTC ANPR. CFTC Proposed Rule.
CFTC Proposed Rules on Margin Requirements for Uncleared Swaps
On April 12, pursuant to Section 731 of the Dodd-Frank Act, the CFTC proposed rules establishing margin requirements for uncleared swaps for swap dealers and major swap participants. Comments must be received within 60 days after publication in the Federal Register. Proposed Rule.
SEC Proposed Clearing Agency Standards for Operations and Governance
On March 3, the SEC proposed rules, as required under the Dodd-Frank Act, regarding the operation and governance of clearing agencies. Under the proposed rules, clearing agencies would be required to: (i) maintain standards with respect to risk management and operations; (ii) have adequate safeguards and procedures to protect the confidentiality of trading information; (iii) have procedures to identify and address conflicts of interest; (iv) require minimum governance standards for their boards of directors; (v) designate a chief compliance officer; and (vi) disseminate pricing and valuation information if they are a central counterparty for security-based swaps. The SEC also reopened the public comment period for rules proposed in October to mitigate conflicts of interest for security-based swap clearing agencies and execution facilities and national securities exchanges that post or make available for trading security-based swaps. Comments on the proposed rules must be submitted by April 29. SEC Release. SEC Proposed Rule. SEC Proposed October Rules.
CFTC and SEC Propose Rules for Swaps and Security-Based Swaps
On December 7, in accordance with the Dodd-Frank Act, the CFTC and the SEC proposed rules and interpretative guidance under the Commodity Exchange Act to further define the terms “swap dealer”, “security-based swap dealer”, “major swap participant”, “major security-based swap participant” and “eligible contract participant”. Comments must be submitted within 60 days of publication in the Federal Register. SEC Release.