CFTC Delays Effective Date for Certain Swap Provisions Under Dodd-Frank Act


On June 14, 2011, the Commodity Futures Trading Commission (“CFTC”) issued a proposed order (“Proposed Order”) that, if adopted, would grant temporary exemptions to certain requirements in Title VII of the Dodd-Frank Act (the “Act”) that otherwise would become effective on July 16, 2011.1

Swap-related requirements under Title VII of the Act, including key amendments to the Commodity Exchange Act (“CEA”), generally become effective on July 16, 2011. However, Section 754 of the Act states that if a provision of Title VII requires implementation by agency rulemaking, such provision shall become effective not less than sixty (60) days after publication of the final rule. Over the past few months, the CFTC has introduced numerous proposed rules that implement the Act’s requirements. However, the CFTC acknowledges that certain rulemakings will not be finalized on or before the quickly-approaching July 16, 2011, effective date.

To address concerns regarding which CEA provisions will (or will not) apply as of July 16, 2011, the CFTC is proposing to grant a temporary extension of the effective date with respect to two categories of self-effectuating CEA regulations that, without such extension, might otherwise apply to market participants as of July 16, 2011: (i) CEA provisions added or amended by Title VII that reference key terms which require further definition; and (ii) Title VII provisions that repeal various exemptions and exclusions set forth in the CEA.

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

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.

© Jackson Walker | Attorney Advertising

Written by:


Jackson Walker on:

JD Supra Readers' Choice 2016 Awards
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.