On April 14, the Commodity Futures Trading Commission (CFTC) unanimously approved two final rules as follows:

  • The CFTC approved a final rule codifying CFTC No-Action Letter 19-22 concerning the margin requirements for the European Stability Mechanism (ESM). Generally, the CFTC margin requirements apply to swap transactions between prudential regulators and swap dealers, major swap participants or financial end users. The final rule excludes ESM from the definition of financial end user, effectively exempting uncleared swaps transactions entered into by ESM from the CFTC margin requirements. The rule will become effective 30 days after publication in the Federal Register.
  • The CFTC approved a final rule to restore a portion of Part 160 that was inadvertently deleted in a 2011 amendment. More specifically, the restored rule requires certain institutions to adopt policies and procedures to address administrative, technical and physical safeguards for the protection of customer records and information. Such policies and procedures must be reasonably designed to (1) insure the security and confidentiality of customer records and information; (2) protect against any anticipated threats or hazards to the security or integrity of customer records and information; and (3 protect against unauthorized access to or use of customer records or information that could result in substantial harm to any customer.

The CFTC press release, with a link to the final rules, is available here.