Introduction On April 18, 2013, as part of its Dodd-Frank Documentation Initiative, ISDA published a sample letter designed to help swap dealers (SDs) document their independence from non-ERISA ‘special entities’ (which includes certain US federal, state and local government agencies, employee benefit plans subject to Title I of the Employee Retirement Income Security Act of […]

Introduction In CFTC Letter 12-17 dated 12 October 2012, the CFTC clarified that, effective immediately, it was unlawful under Section 2(e) of the Commodity Exchange Act (“CEA”) for a person that is not an “eligible contract participant” (“ECP”) to guaranty the swap obligations of another party, unless the swap in question was executed on a […]

Another interesting article from Risk Magazine, which reports that CFTC Commissioner Scott O’Malia has confirmed that the CFTC has not yet commenced work on a final draft of the definition of “US Person”, important in understanding many cross-border aspects of the Dodd-Frank Act.  The market is currently using a narrow definition published in a CFTC […]

On 22 March 2013, the ISDA March 2013 Dodd-Frank Protocol (the “DF Protocol 2.0”) opened.  The DF Protocol 2.0 is part of ISDA’s Dodd-Frank Documentation Initiative and attempts to assist the industry in complying with certain CFTC final rulings imposed under Title VII of the Dodd–Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank […]

Bloomberg is reporting that the CFTC has ruled that swaps executed between affiliates which are subject to the Dodd-Frank Act will not be subject to the requirement to clear.

Risk Magazine is reporting that over 200 funds, managed by 77 fund managers, are known to be “Active Funds” and so will be subject to mandatory clearing under the Dodd-Frank Act, due to commence in relation to certain IRS and CDS on 11 March 2013. According to the article, up to a third of these […]

Introduction Beginning on 11 March 2013, mandatory clearing will be introduced on a phased basis under the Dodd-Frank Act in relation to “Category 1 Entities” executing “Covered Swaps”.  From that day, subject to certain exemptions, it will become unlawful[1]for any Category 1 Entity to engage in any Covered Swap unless the swap in question is […]

On 2 January 2013, the CFTC published a list of the 65 entities which had provisionally been registered as swap dealers under the Dodd-Frank Act. As of 31 December 2012, these entities began reporting interest rate and credit index swap transaction data to swap data repositories.  On 28 February 2013 reporting of equity, foreign exchange […]

Introduction On 10 December 2012, the Federal Deposit Insurance Corporation (FDIC) and the Bank of England (BOE) published a joint strategy paper on the resolution of globally active, systemically important, financial institutions (G-SIFIs). Broadly speaking, there are two main approaches to the resolution of G-SIFIs: “Single point of entry” (or “top down”) resolution pursuant to […]