CFTC Proposed Extension of the Effective Date for Swap Regulation

On October 18, the CFTC proposed to amend a final order issued on July 14 granting temporary exemptive relief from certain provisions of the Commodity Exchange Act that would have taken effect on July 16. The proposed order would extend such exemptive relief from December 31 to July 16, 2012. The original order grants relief from: (i) provisions added or amended by Title VII of the Dodd-Frank Act that reference one or more terms regarding entities or instruments that Title VII requires to be further defined and (ii) provisions that may apply to certain agreements, contracts, and transactions in exempt or excluded commodities as a result of the repeal of various CEA exemptions and exclusions. CFTC Fact Sheet.

CFTC Final Rules on Position Limits for Futures and Swaps

On October 18, pursuant to Section 737 of the Dodd-Frank Act, the CFTC adopted final rules requiring limits on speculative positions in 28 core physical commodity contracts and their economically equivalent futures, options, and swaps. The position limits established under the final rules will be effective 60 days after the term “swap” is further defined by CFTC rulemaking. CFTC Fact Sheet.

SEC Proposed Rules for Registration of Swap Dealers and Participants

On October 12, the SEC proposed rules, pursuant to Title VII of the Dodd-Frank Act, setting out the process security-based swap dealers and major security-based swap participants must follow to register with the SEC. Comments must be submitted within 60 days after publication in the Federal Register. SEC Release. SEC Proposed Rule.

CFTC Anti-Manipulation and Anti-Fraud Final Rules

On July 7, pursuant to Section 753 of the Dodd-Frank Act, the CFTC adopted final rules prohibiting manipulation and fraud in connection with any swap, or a contract of sale of any commodity in interstate commerce, or for future delivery on or subject to the rules of any registered entity. Rule 180.2 makes it unlawful for any person, directly or indirectly, to manipulate or attempt to manipulate the price of such instruments. Rule 180.1 prohibits manipulative or deceptive devices and contrivances, employed intentionally or recklessly, regardless of whether the conduct in question was intended to create or did create an artificial price. The final rules will become effective on August 15. CFTC Fact Sheet. CFTC Final Rules.

CFTC Part 40 Final Rulemaking

On July 19, the CFTC issued final rules to establish a new procedural framework for the submission of new products, rules, and rule amendments by designated contract markets, derivatives clearing organizations, swap execution facilities, and swap data repositories. The final rules also require a systemically important derivatives clearing organization (SIDCO) to provide the CFTC with 60-day advance notice of any proposed change to its rules or procedures that could materially affect the nature or level of risks presented by the SIDCO. The final rules will be effective 60 days after publication in the Federal Register. CFTC Fact Sheet. CFTC Final Rules.

Treasury Notice of Proposed Determination on Foreign Exchange Swaps and Forwards

On April 29, Treasury issued a notice of proposed determination exempting foreign exchange swaps and forwards from the definition of “swap” under the Commodities Exchange Act. The proposed determination does not extend to other foreign exchange derivatives including foreign exchange options, currency swaps, and non-deliverable forwards. Foreign exchange swaps and forwards will remain subject to the Dodd-Frank Act’s trade reporting requirements and business standards. Comments must be submitted within 30 days after publication in the Federal Register. Treasury Fact Sheet. Proposed Determination.

CFTC and SEC Proposed Rules and Guidance for Swap Definitions

On April 27, pursuant to Sections 712 and 721 of the Dodd-Frank Act, the CFTC and SEC issued proposed rules that would further define the terms swap, security-based swap, and security-based swap agreement. The proposed rules also would adopt regulations regarding mixed swaps as well as books and records for security-based swap agreements. During the April 27 Open Meeting in which the CFTC approved the proposed rules, the Commissioners observed four different approaches between the SEC and CFTC: (i) the inclusion of anti-evasion provisions in the proposed rules; (ii) the treatment of insurance on swaps as a securities-based swap; (iii) treatment of swaps linked to futures for foreign sovereign debt securities; and (iv) the jurisdiction and applicable regulatory requirements of the CFTC over indexed credit default swaps. Comments must be submitted within 60 days after publication in the Federal Register. SEC Release. CFTC Fact Sheet. CFTC Open Meeting Webcast.