As scheduled, the CFTC announced the second phase of compliance for mandatory derivatives clearing. From 10 June 2013, subject to certain (hedging and corporate) exemptions, it will become unlawful[1] for any Category 2 entity to engage in any Covered Swap (new swaps and novations), unless the swap in question is submitted for clearing to a […]

On 10 June 2013, the CFTC’s Division of Clearing and Risk (DCR) issued a time-limited no-action letter for certain banks having assets of less than $10 billion (“Small Banks”). Pursuant to section 2(h) of the Commodity Exchange Act (CEA), the second phase of mandatory clearing for certain interest rate and credit default swaps for Category […]

Yesterday the CFTC issued a press release and amended order confirming that, provided the European Securities and Markets Association (ESMA) informs the CFTC that CFTC Interim Compliant Identifiers (CICIs) issued by DTCC-SWIFT are accepted for reporting purposes under EMIR, General Entity Identifiers (GEIs) issued by WM Datenservice (a German entity sponsored by Bafin in relation […]

An interesting recent article from the Washington Post, graphically illustrating the high viscosity of Dodd-Frank implementation. The article points out that of the 398 rules required by the bill only 153 have been finalised, 117 have been proposed but not finalised and 128 have not yet been proposed.  It also breaks down the (lack of) […]

In a keynote speech on 6 June 2013 at the Sandler O’Neill Global Exchange & Brokerage Conference, CFTC Chairman Gary Gensler responded to requests from the market for guidance on the cross-border application of the Dodd-Frank Act and specifically the rule proposed by the CFTC in June 2012 mandating the regulation of activities outside of […]

On 13 May 2013, ISDA launched the ISDA 2013 Reporting Protocol (the “Reporting Protocol”). The purpose of the Reporting Protocol is to assist firms which are subject to mandatory trade reporting requirements (under, inter alia, the Dodd-Frank Act, EMIR and MifIR).  In recognition of the fact that many firms may also be subject to contractual, […]

On 14 May 2013, CFTC Commissioner Scott D O’Malia gave the keynote speech to the Energy Risk USA 2013 Conference. The speech makes interesting reading in that it amounts to the CFTC marking its own scorecard in terms of its response to the challenges presented by Dodd-Frank Act. Rules and the Rulemaking Process On the […]

Half of buy-side firms still not ready for swap rules | news | Asset Classes | Derivatives | thetradenews.com. Although it only provides supporting evidence to a conclusion which will surprise nobody, here is a brief article regarding industry readiness for the impact of Dodd-Frank and EMIR on collateralisation processes within buy-side firms.  

On 6 May 2013, ISDA published the Derivatives/FX Prime Brokerage Business Conduct Allocation Protocol to help prime brokers and executing dealers comply with the Dodd-Frank External Business Conduct Rules (“EBC”) which became effective on 1 May 2013. Broadly, in a prime brokerage situation, the prime broker may (i) grant limited agency powers to the counterparty […]