Federal Register: Swap Trading Relationship Documentation Requirements for Swap Dealers and Major Swap Participants

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Gavel.png FINAL RULE: This page refers to the proposed rule on swap documentation requirements. The CFTC Final Rule: Confirmation, Portfolio Reconciliation, Portfolio Compression, and Swap Trading Relationship Documentation Requirements for Swap Dealers and Major Swap Participants was issued August 27, 2012.
Dodd-Frank Timeline,Swap Trading Relationship Documentation for Swap Dealers and Major Swap Participants
Proposal Date Final Rule Issue Effective Date
February 8, 2011 September 11, 2012 November 13, 2012

On January 13, 2011, the CFTC held an open meeting on the Ninth Series of Proposed Rules under the Dodd-Frank Act. Among the topics at this meeting was a rule proposal regarding the setting of documentation requirements for swap dealers and major swap participants. The entire proposal, as it originally appeared in the Federal Register can be found below.

According to the proposal, each swap dealer and major swap participant must:

  • ensure that, prior to entering into a swap with a counterparty, the parties have agreed in writing to all terms governing their trading relationship;
  • include in its swap trading relationship documentation written documentation in which the parties agree on the methods, procedures, rules, and inputs for determining the value of each swap at any time from execution to the termination, maturity, or expiration of the swap;
  • create a record containing certain items of information whenever its submits a swap for clearing to a registered derivatives clearing organization (DCO); and
  • perform an annual audit of the required swap trading relationship documentation to ensure compliance.

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



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