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 […]

On 27 September the Commodity Futures Trading Commission (CFTC) issued a further 3 no-action letters – this time in relation to swap execution facilities (SEFs). CFTC Letter No. 13-55 CFTC Letter No. 13-55 provides no-action relief to extend the date on which a SEF must comply with certain swap data reporting requirements under Part 43 […]

On 24 September 2013, ISDA and Markit issued a press release announcing the launch of the ISDA “Cross-Border Swaps Representation Letter for US Banks” (the “Representation Letter”) on ISDA Amend.  The Representation Letter is designed to assist market participants comply with the provisions of the “Interpretive Guidance and Policy Statement Regarding Compliance with Certain Swap […]

On 16 September 2013, ISDA published its “Cross-Border Swaps Representation Letter for US Banks” (the “Representation Letter”).  The Representation Letter is designed to assist market participants comply with the provisions of the “Interpretive Guidance and Policy Statement Regarding Compliance with Certain Swap Regulations” published by the CFTC on 26 July 2013.  This describes the circumstances […]

Introduction A further addition to the already long list of bilateral amendments to derivative documentation became available on 10 September 2013 when ISDA published its Dodd-Frank March 2013 Protocol (DFP2) to EMIR Top Up Agreement (the “Extension Agreement”) together with an Explanatory Memorandum. The Extension Agreement is a bilateral amendment which allows parties which have […]

Yesterday, the Macroeconomic Assessment Group on Derivatives (MAGD) issued its second report prophesying the (necessarily) macroeconomic effects of planned regulatory reforms. The MAGD was set up under the auspices of the ODCG and comprises financial and economic “modelling experts” from central banks and other authorities. The 79 page report came to the unsurprising conclusion that, […]

A quick reminder that the CFTC’s mandatory clearing requirement for interest rate swaps and credit default swaps when entered into by non-financial commercial end users (Category 3 Entities) will begin on 9 September 2013.  Many major businesses and most public companies are included within the definition of Category 3 Entities.  The Commission’s clearing requirement does […]

Following a request from ISDA and in the new spirit of cross-Atlantic amity, the CFTC has extended no action relief for portfolio reconciliation of uncleared swaps (regulation § 23.502) until 15 September 2013. Readers will recognise the date as coincident with the start of EMIR obligations with respect to portfolio reconciliation and dispute revisions. The […]

ISDA has released a paper outlining its suggestions for a general framework to harmonise cross-border regulation- their main theme is concordance with the G20 Pittsburgh/Cannes declarations. Market participants are all too familiar with the solutions advocated by the G20 accord: reporting, collateral, clearing and more capital. The difficulty comes in the interpretation/implementation of these goals […]