On December 7, the CFTC issued limited no-action relief to swap dealers and major swap participants from compliance with the prohibition in Regulation 23.22(b) against permitting a person who is subject to a statutory disqualification to effect or be involved in effecting swaps on behalf of the swap dealer or major swap participant. CFTC Release. No-Action Letter.
major swap participants
CFTC No-Action Relief for Certain Swap Transactions
On December 6, the CFTC issued a no-action letter that provides swap dealers and major swap participants with relief from the requirement to disclose the pre-trade mid-market mark to counterparties in certain foreign exchange transactions under Regulation 23.43. CFTC Release. CFTC No-Action Letter.
On November 30, the CFTC issued a time limited no-action letter granting relief for bespoke or complex swaps from certain reporting obligations. CFTC Release. CFTC No-Action Letter.
CFTC Final Rules for Swap Dealers and Major Swap Participants
On August 27, the CFTC approved final rules to improve the risk management procedures of swap dealers and major swap participants. The final rules will become effective 60 days after publication in the Federal Register. CFTC Release.
SEC Proposal for Security-Based Swap Dealer and Participant Standards
On June 29, pursuant to Title VII of the Dodd-Frank Act, the SEC proposed rules to impose business conduct standards on security-based swap dealers and major swap participants. The proposed rule would: (i) require these swap dealers and participants to communicate in a fair and balanced manner and make certain disclosures; and (ii) impose additional requirements for dealings with special entities such as municipalities, pension plans, and endowments. Comments must be submitted by August 29. SEC Release. Proposed Rule.
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 Rules on Capital Requirements for Swap Dealers and Major Swap Participants
On April 27, pursuant to Section 731 of the Dodd-Frank Act, the CFTC proposed rules that would mandate capital requirements for swap dealers and major swap participants that are not subject to prudential regulation by the Fed, OCC, FDIC, FCA, or FHFA. Capital requirements would be adjusted depending on whether a swap dealer or major swap participant is a futures commissions merchant, a nonbank subsidiary of a U.S. bank holding company, or neither of the foregoing. CFTC Fact Sheet.
Joint Proposed Rule on Swap Margin and Capital Requirements
On April 12, the FDIC, Fed, FCA, FHFA, and OCC issued a notice of proposed rulemaking establishing margin and capital requirements for swap dealers, major swap participants, security-based swap dealers, and major security-based swap participants pursuant to Sections 731 and 764 of the Dodd-Frank Act. The proposal adopts a risk-based approach in establishing the minimum amount of margin a covered swap entity must collect from a counterparty and the frequency with which it must calculate and collect such margin. On April 12, the CFTC held an open meeting to discuss and approve a similar proposed rule. The Commissioners observed that significant inconsistencies between the CFTC rule and the rule proposed by the aforementioned agencies would need to be reconciled in future rulemaking actions. FDIC Release. Proposed Rule. CFTC Hearing Link.