Corporate & Financial Weekly Digest

Corporate & Financial Weekly Digest

Tag Archives: swap dealers

CFTC Extends No-Action Relief to SEFs and DCMs From Certain Error Correction Regulations

Posted in CFTC
On May 30, the Commodity Futures Trading Commission’s (CFTC) Division of Market Oversight and Division of Clearing and Risk (Divisions) issued Staff Letter 17-27, extending previously granted no-action relief to swap execution facilities (SEFs) and designated contract markets (DCMs) from restrictions on using pre-arranged trades to correct clerical or operational errors that (1) caused a… Continue Reading

NFA Issues Notice Regarding Monthly Risk Data Reporting Requirements for Swap Dealers

Posted in CFTC
On May 30, the National Futures Association (NFA) issued Interpretive Notice I-17-1 (Notice), which sets forth the specific list of risk metrics that swap dealers (SDs) will be required to electronically report to NFA on a monthly basis, beginning with the initial January 31, 2018, reporting deadline. NFA intends to use this information to assess… Continue Reading

CFTC Proposes Amendments to Certain Rules Governing CCO Duties and Annual Reports

Posted in CFTC
On May 3, the Commodity Futures Trading Commission announced proposed rules amending its regulations regarding certain duties of chief compliance officers (CCOs) of swap dealers (SDs), major swap participants (MSPs) and futures commission merchants (FCMs; each, a Registrant). In addition, the proposed rules amend certain requirements for preparing and furnishing CCO annual reports on a… Continue Reading

CFTC Extends Previously Granted No-Action Relief for Swap Dealers Complying With EU Requirements

Posted in CFTC, Derivatives
On April 18, the Commodity Futures Trading Commission’s Division of Swap Dealer and Intermediary Oversight (DSIO) issued No-Action Letter 17-22, which extends relief previously granted under CFTC No-Action Letter 17-05. CFTC No-Action Letter 17-05 allowed certain swap dealers to substitute compliance with the non-centrally cleared OTC derivative margin requirements applicable in the European Union (the… Continue Reading

CFTC Releases No-Action Letter Regarding the Transfer of Customer-Owned Securities by FCMs to Foreign Brokers

Posted in CFTC
On April 11, the Commodity Futures Trading Commission’s Division of Swap Dealer and Intermediate Oversight (DSIO) made publicly available No-Action Letter No. 16-88. This letter grants no-action relief to a futures commission merchant (FCM) intending to deposit customer-owned securities in an individual client account (ISA) with a United Kingdom affiliate (Affiliate) for purposes of margining… Continue Reading

CFTC Extends Public Comment Period for Swap Dealers and Major Swap Participants Minimum Capital Requirement Proposal

Posted in CFTC, Derivatives
On March 16, the Commodity Futures Trading Commission published in the Federal Register its decision to extend the public comment period for the proposed rules related to minimum capital requirements for swap dealers and major swap participants (Proposal). (For a more complete discussion of the Proposal, see the December 9, 2016 edition of Corporate &… Continue Reading

EU and Prudential Regulators Issue Statements on March 1 Compliance With Swap Margin Rules

Posted in Banking, Derivatives, Dodd-Frank Developments
Lacking the ability to issue formal no-action relief from strict compliance with the variation margin rules for uncleared swaps coming into effect on March 1, the Board of Governors of the Federal Reserve System, the Office of Comptroller of the Currency (OCC) and the European Supervisory Authorities (ESA) have each issued statements suggesting that they… Continue Reading

CFTC Provides Time-Limited Relief for Variation Margin and Minimum Transfer Amount Provisions

Posted in CFTC, Derivatives
On February 13, the Division of Swap Dealer and Intermediary Oversight (Division) of the Commodity Futures Trading Commission (CFTC) provided time-limited no-action relief for failure of a swap dealer (SD) that does not have a prudential regulator to comply with the CFTC’s variation margin requirements by the March 1 compliance date (March 1 Requirements). (There… Continue Reading

CFTC Releases Time Limited No-Action Relief for Swap Dealers Complying With EU Requirements

Posted in CFTC, Derivatives, EU Developments
On February 1, the Commodity Futures Trading Commission’s Division of Swap Dealer and Intermediary Oversight (DSIO) issued No Action Letter 17-05, which allows certain swap dealers to substitute—for a limited period of time—compliance with the non-centrally cleared OTC derivative margin requirements applicable in the European Union (the “EU Rules”) for compliance with certain of the… Continue Reading

CFTC Re-Proposes Minimum Capital Requirements for Swap Dealers and Major Swap Participants

Posted in CFTC, Derivatives, Dodd-Frank Developments
On December 2, the Commodity Futures Trading Commission re-proposed minimum capital requirements for swap dealers (SDs) and major swap participants (MSPs) that are not subject to prudential regulation (Covered Entities). The CFTC had initially proposed capital rules for Covered Entities in 2011 but deferred further action pending finalization and implementation of uncleared swaps margin requirements.… Continue Reading

CFTC Staff Extends Time-Limited Swap Data Reporting Relief for Certain Foreign Swap Dealers and Major Swap Participants

Posted in CFTC, Derivatives
On November 21, the Commodity Futures Trading Commission Division of Market Oversight extended time-limited relief for certain registered swap dealers (SDs) and major swap participants (MSPs) from the swap data reporting rules set forth in Part 45 and Part 46 of the CFTC’s regulations. The relief is available to non-US SDs and non-US MSPs established… Continue Reading

CFTC Releases Swap Dealer De Minimis Exception Report

Posted in CFTC, Derivatives
On August 15, the Commodity Futures Trading Commission’s Division of Swap Dealer and Intermediary Oversight (Division) published the Swap Dealer De Minimis Exception Final Staff Report, which summarizes industry comments and data related to the scheduled change to the de minimis exception under the CFTC rules defining “swap dealer.” A related preliminary report analyzed swap… Continue Reading

CFTC Extends Relief for Non-US Swap Dealers From Transaction-Level Requirements

Posted in CFTC, Derivatives, Dodd-Frank Developments
On August 4, the Division of Swap Dealer and Intermediary Oversight, Division of Clearing and Risk and Division of Market Oversight of the Commodity Futures Trading Commission extended no-action relief (Relief) from certain transaction-level requirements previously granted to certain non-US swap dealers (SDs). Transaction-level requirements include: (1) required clearing and swap processing; (2) mandatory trade… Continue Reading

SEC Adopts Trade Acknowledgement and Verification Rules for Security-Based Swaps

Posted in Broker-Dealer, Derivatives, Dodd-Frank Developments
On June 8, the Securities and Exchange Commission announced the adoption of the Securities Exchange Act of 1934 (Exchange Act) Rules 15Fi-1 and 15Fi-2, which establish new trade acknowledgement and verification requirements for security-based swap (SBS) entities entering into SBS transactions.… Continue Reading

CFTC Proposes Additional Interest Rate Swaps for Clearing Requirement

Posted in CFTC, Derivatives, Dodd-Frank Developments
The Commodity Futures Trading Commission is proposing to add certain interest rate swaps in nine new currencies to the list of interest rate swaps and related products that are currently subject to mandatory clearing—so these additional swaps also will be subject to mandatory Swap Execution Facility (SEF) or Designated Contract Market (DCM) trading once they… Continue Reading

CFTC Adopts Final Rule for Cross-Border Application of Swap Margin Requirements

Posted in CFTC, Derivatives, Dodd-Frank Developments
On May 24, the Commodity Futures Trading Commission adopted by a 2-1 vote a final rule that specifies how the CFTC’s margin rules for uncleared swaps (adopted late last year and published on January 6, 2016) (the “Margin Rules”) apply to swaps involving counterparties from jurisdictions other than the United States. In general, the CFTC… Continue Reading

SEC Adopts Business Conduct Rules and Chief Compliance Officer Requirements for Swap Dealers and Major Security-Based Swap Participants

Posted in Derivatives, Dodd-Frank Developments, SEC/Corporate
On April 13, the Securities and Exchange Commission voted to adopt final rules (the “Final Rules”) implementing business conduct standards and chief compliance officer requirements for security-based swap dealers and major security-based swap participants (collectively, “Swap Entities”). Authority for the SEC to adopt the Final Rules is grounded in Title VII of the Dodd-Frank Wall… Continue Reading

CFTC Grants Relief for End Users from Trade Option Filing Requirements

Posted in CFTC, Derivatives
The Commodity Futures Trading Commission’s Division of Market Oversight (DMO) has issued CFTC Letter No. 16-10, which provides temporary no-action relief from certain trade option reporting requirements to market participants that are neither swap dealers nor major swap participants (Non-SD/MSPs). CFTC Letter No. 16-10, taken together with CFTC Letter No. 13-08, provide reporting relief to… Continue Reading

CFTC Issues Order Delegating to the NFA Certain Functions Related to Notices of Swap Valuation Disputes

Posted in CFTC, Derivatives, Dodd-Frank Developments
The Commodity Futures Trading Commission has authorized the National Futures Association (NFA) to receive, review, maintain and serve as the official custodian of records for notices of swap valuation disputes in excess of US $20 million (or its equivalent in other currencies) provided by swap dealers (SDs) and major swap participants (MSPs), pursuant to its… Continue Reading

NFA To Host Audio Conference for SDs and MSPs

Posted in CFTC, Derivatives, Dodd-Frank Developments
National Futures Association (NFA) will hold an audio conference on Thursday, September 24, at 11:00 a.m. ET to help prepare swap dealers (SDs) and major swap participants (MSPs) for their upcoming examinations. Interested persons should register in advance here. A recording of the conference will be available on NFA’s website beginning September 25, and a transcript… Continue Reading

CFTC Further Extends Valuation Data Reporting Relief for SDs and MSPs

Posted in CFTC, Dodd-Frank Developments
The Commodity Futures Trading Commission’s Division of Market Oversight (DMO) has further extended no-action relief from the valuation data reporting requirements for cleared swaps under CFTC Regulation 45.4(b)(2)(ii). Specifically, swap dealers (SDs) and major swap participants (MSPs) that are reporting counterparties to a cleared swap are not required to report valuation data to the relevant… Continue Reading