CFTC Issues Proposed Rule to Clarify Responsibilities of Clerical Employees of SDs and MSPs

In general, Commodity Futures Trading Commission Regulation 23.22 prohibits a swap dealer (SD) or major swap participant (MSP) from permitting an associated person (AP) of the SD or MSP to effect or be involved in effecting swaps on behalf of such SD or MSP if the AP is subject to a statutory disqualification. The CFTC has now proposed to amend Regulation 23.22 to make it inapplicable to the clerical or ministerial employees of an SD or MSP. The CFTC proposal, therefore, would make it unnecessary for SDs and MSPs to conduct extensive background checks on those employees.

The proposed rule is available here.


Topics:  Background Checks, CFTC, Major Swap Participants, Proposed Regulation, Swap Dealers

Published In: Finance & Banking Updates, Labor & Employment Updates, Securities Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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