In the space of a few days in mid-October, the Commodity Futures Trading Commission (the “CFTC”) published a number of Q&As and FAQs and the CFTC staff at the Division of Swap Dealer and Intermediary Oversight (the “Division”) and the Office of General Counsel (“OGC”) published several interpretative and no-action letters. Each publication addressed the implications of or provided clarity with respect to a number of rulemakings that were set to become effective on October 12, 2012. October 12, 2012 was a key date in the Dodd-Frank regulatory reform calendar, as this is the date upon which the joint CFTC and Securities and Exchange Commission (the “SEC”) rules further defining key terms such as “swap” and “security-based swap” became effective and triggered the effectiveness of a number of other rules. We have briefly summarized each publication below.
Q&A — On Start of Swap Data Reporting -
On October 10, 2012, the CFTC published a Q&A entitled “Q&A—On Start of Swap Data Reporting”.
In the Q&A, the CFTC clarified how registration requirements of Swap Dealers (“SDs”) and Major Swap Participants (“MSPs”) will affect the actual date on which SDs and MSPs must first report swap data to a Swap Data Repository (“SDR”). The three compliance dates for reporting swaps to a global change to an SDR under Part 45 are October 12, 2012 (for credit and interest rate swap transactions in which the SDs and MSPs are a party), January 10, 2013 (for equity, foreign exchange and other commodity swap transactions for which SDs and MSPs are a party) and April 10, 2013 (for non-SDs/MSPs that are nonetheless required to report a swap transaction they execute with another non-SD/MSP). The Q&A aligns the Part 45 reporting requirements with the registration requirements for SDs and MSPs and addresses industry concerns as to the timing of when SDs/MSPs not yet registered would need to begin reporting.
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