View source for CFTC Final Rule: Amendments to the Definition of ‘‘Material Terms’’ for Purposes of Swap Portfolio Reconciliation

===Background===

On August 27, 2012, the [[CFTC]] issued its second round of final rulemakings related to [[Business Conduct Standards|internal business conduct standards]] for [[swap dealers and major swap participants]] ([[SD/MSP]]s), which included a final rule on requirements for confirmation, portfolio reconciliation and portfolio compression Requirements for [[SD/MSP|swap dealers and major swap participants]]. The rule appeared in the Federal Register on September 11, 2012, and will become effective on November 13, 2012.

In 2013, the International Swaps and Derivatives Association, Inc. (‘‘ISDA’’) requested interpretive guidance from commission staff that would permit certain swap data elements to be excluded from portfolio reconciliation as required under the final rule. Specifically, ISDA requested that ‘‘the terms’’ of a swap that counterparties must exchange during portfolio reconciliation exercises be limited to the ‘‘material terms’’ of a swap, and that certain data fields be exempt from the definition of "material terms."

On June 27, 2013, after considering ISDA's request, the CFTC Division of Swap Dealer and Intermediary Oversight (DSIO) issued a no-action letter relating to the terms that are included in portfolio reconciliations.

On September 15, 2015, the CFTC approved a proposed rule that would amend the regulatory definition of “material terms” for purposes of swap portfolio reconciliation under Commission regulation 23.502.<ref>{{cite web|url=http://www.cftc.gov/PressRoom/PressReleases/pr7230-15|name=CFTC Announces Proposal to Amend the Definition of “Material Terms” for Purposes of Swap Portfolio Reconciliation |org=CFTC|date=October 1, 2015}}</ref> The rule appeared in the Federal Register on September 22, 2015, and the deadline for public comment was November 23, 2015.