CFTC Final Order on the Effective Date for Swap Regulation

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On July 3, the OCC issued a final Order on the effective date for swap regulation. The OCC previously extended the temporary exemptive relief from the Commodity Exchange Act that otherwise would have taken effect on July 16, 2011, the general effective date of Title VII of the Dodd-Frank Act. The final Order extends the previous extension with certain modifications, including: (i) removing references to entities terms such as “swap dealer”, “major swap participant”, and “eligible contract participant”, (ii) extending the potential latest expiration of the Order to December 31 or, depending on the nature of the relief, such other date as determined by the Commission, (iii) allowing the clearing of agricultural swaps; and (iv) removing references to the exempt commercial market and board of trade grandfather relief. The Order is effective immediately. CFTC Release.