On April 13, the National Futures Association (NFA) issued Notice I-21-15 advising members firms that new NFA Compliance Rule 2-50 and its related Interpretive Notice become effective June 30. (The proposal of the new rule and Interpretive Notice was discussed in the March 12, 2021 edition of Corporate & Financial Weekly Digest.)
Continue Reading NFA Issues Notice Regarding Effective Date of NFA’s Rules Regarding CPO Notice Filing Requirements

On December 3, the Commodity Futures Trading Commission’s (CFTC) Division of Clearing and Risk (DCR) and Division of Market Oversight (DMO, and collectively, the Divisions) issued CFTC Letter No. 20-43, an interpretation regarding Sections 2(h)(1) and 2(h)(8) of the Commodity Exchange Act (CEA) and the CFTC regulations thereunder.
Continue Reading CFTC Interprets and Issues No-action Relief from Certain Clearing and Trade Execution Requirements

On December 16, the Commodity Futures Trading Commission adopted final rules that set margin requirements for swap dealers and major participants (collectively, Swap Entities) regulated by the CFTC with respect to swaps that are not cleared with a derivatives clearing organization or clearing agency. The final rules are generally consistent with the rules adopted on October 30 by the US prudential regulators (the Federal Deposit Insurance Corporation, Board of Governors of the Federal Reserve, Office of the Comptroller of the Currency, Farm Credit Administration and Federal Housing Finance Agency) and the international standards for non-cleared swap margin published by the Basel Committee on Banking Supervision and the Board of the International Organization of Securities Commissions in September 2013. The CFTC’s margin rules will be implemented in phases starting on September 1, 2016. These margin rules are not intended to have retroactive effect and pre- and post-compliance date swaps can be treated separately even if they are documented under the same master agreement if they are separated into different netting portfolios.
Continue Reading CFTC Adopts Final Margin Rules for Swap Dealers