On July 26, 2013, the Commodity Futures Trading Commission (“CFTC”) published its “Interpretive Guidance and Policy Statement Regarding Compliance with Certain Swap Regulations” (“Interpretive Guidance”).  The Interpretive Guidance details the circumstances in which CFTC will assert jurisdiction over swap transactions that occur outside of the United States. Parties to swap transactions which are subject to […]

While it was always a fair bet that major banks would be vociferous in their objections to the CFTC’s  closing of a putative cross-border regulation loophole, it is (at least recently) unusual to see the EU join the critical chorus. Bank lobbyists and Republican lawmakers have strenuously objected to the CFTC’s 15th November advisory statement, […]

The CFTC yesterday released its inaugural weekly swaps report, an important step in fulfilling its mandate to bring transparency to derivatives markets. The report aggregates gross notional value and dollar and ticket volume in the: interest rate, currency, equity and commodity swap markets. Swaps will be further categorised by participant type and by cleared\uncleared status. […]

The CFTC has issued its final rules for SIDCO’s and DCO’s to achieve full consistency with the International Principles for Financial Market Infrastructures. This latest set of final rules supplements the 12th August rules, aligning SIDCO’s with the PFMI’s, effectively filling in the gaps.  The 199-page rulebook now covers the following areas in detail: governance, […]

Risk magazine is reporting that the Volcker rule, which will ban proprietary trading, could be pushed back as far as July 2015 due to delays in the rule-making process.  If so, this would represent a 12-month extension to a rule which is due to come into effect on 21 July 2014.

The House of Congress voted yesterday to repeal the controversial “push-out rule”.  Also referred to as the “Lincoln Amendment” (Blanche not Abe), Section 716is a prohibition on Federal assistance to swaps entities. The Section is broadly-drafted, “Federal assistance” includes FDIC guarantees and the use of the Fed’s discount window, while “swaps entity” comprises both dealers […]

25 October 2013. The CFTC has issued a conditional, time-limited no-action letter exempting SEF’s from Regulations 37.9(a)(2) and 37.203(a). The Regulations respectively deal with prescribed execution methods and prohibit pre-arranged trading. The no-action letter will only apply to those trades which have been rejected for clearing due to operational or clerical deficiencies. In such cases […]

On 17 October 2013, the CFTC published No-Action Letter No. 13-64, which provides relief to certain non-US persons that are not guaranteed or conduit affiliates of US persons. Under CFTC regulations , persons who are not currently registered as swap dealers are not required to register if the aggregate gross notional amount of their swap […]

In a letter (dated 30 September 2013) to CFTC Chairman Gary Gensler, EU Internal Market Commissioner Michel Barnier proposed more than a five-month delay in registration requirements for European swap-execution facilities (SEFs).  The CFTC requires swap-platforms to register by 2 October 2013.  Gensler has remained firm on the deadline but the agency has granted three […]