Federal Register: Implementation of Conflicts of Interest Policies and Procedures by Swap Dealers and Major Swap Participants

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Gavel.png FINAL RULE: This page refers to the proposed rulemaking on Conflicts of Interest Policies and Procedures by Swap Dealers and Major Swap Participants, Futures Commission Merchants and Introducing Brokers. For a summary of the final rule click here.
Dodd-Frank Timeline, Conflicts of Interest for Swap Entities, FCMs, IBs
Final Rule Issue Effective Date Compliance Date
April 3, 2012 August 3, 2012 October 12, 2012


On November 10, 2010, the Commodity Futures Trading Commission (CFTC) held its fourth in the series of open meetings to consider the issuance of proposed rulemakings under the Dodd-Frank Act. One of the agenda items was a proposed rule regarding conflicts of interest for swap dealers, major swap participants, futures commission merchants (FCMs) and introducing brokers (IBs).[1]

The proposal is intended to create partitions within such entities between individuals involved with research or analysis and those involved with trading and clearing activities. Specifically, the proposal:

  • places restrictions on non-research personnel influencing the content of research reports;
  • prohibits the supervision of research analysts by trading and clearing personnel;
  • prohibits from a research analyst's compensation his or her contribution to trading or clearing activities;
  • prohibits the exchange, or offer of exchange, of favorable research for business or compensation; and
  • requires full disclosure of potential conflicts of interest.

Related Documents: Fact Sheet, Q&A, and Rule Proposal as it Appeared in the Federal Register

References

  1. Open Meeting on Fourth Series of Proposed Rules under the Dodd-Frank Act. CFTC. Retrieved on March 7, 2011.

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