CFTC Interim Final Rule: Business Conduct and Documentation Requirements for Swap Dealers and Major Swap Participants

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Gavel.png FINAL RULE: The interim final rule delays the compliance dates for certain Business Conduct Standards.
Interim Final Rule Delaying SD/MSP Business Conduct, Documentation
Rule Approved Comment Deadline Compliance Date, Business Conduct Compliance Date, Documentation
December 18, 2012 February 1, 2013 May 1, 2013 July 1, 2013

On December 18, 2012, the CFTC issued interim final rules to extend the compliance dates for certain business conduct standards and documentation rules for swap dealers and major swap participants (SD/MSPs).<ref>CFTC Issues Interim Final Rules Regarding Business Conduct and Documentation Requirements for Swap Dealers and Major Swap Participants. CFTC. Retrieved on December 19, 2012.</ref> The rule was approved unanimously in seriatim, and became effective when it appeared in the Federal Register on January 2, 2013. However, the commission may choose to modify compliance dates depending on public comments it receives. Comments will be accepted until February 1, 2013. To submit a comment, click HERE.


Among the CFTC rulemakings related to the Dodd-Frank Act are amendments to the Commodity Exchange Act, applicable to SD/MSPs under section 4s. Such rules were finalized in the following rulemakings:

Compliance Dates[edit]

Subsequent to the issuance of the above-identified rules, the Commission received requests from a variety of market participants for additional time to achieve compliance with the documentation requirements of such rules. Specifically, the International Swaps and Derivatives Association (ISDA) stated that more time is needed for counterparties to understand the Commission’s requirements, to understand the legal consequences of adhering to the protocol, and to gather the information needed to comply. Additionally, ISDA said tht Hurricane Sandy, which hit New York's financial district in October 2012 "shut down institutions and vendors, depleted staff and severely damaged development efforts in a number of compliance areas – producing a knock-on effect across institutional (and vendor) compliance efforts."

As such, the commission has extended the compliance date by four to six months, as follows

  • May 1, 2013 Recordkeeping, compliance reportingduties, and external business conduct standards
  • July 1, 2013 Portfolio reconciliation and swap trading relationship documentation rules

Related Document: Interim Final Rule as it Appeared in the Federal Register[edit]

Note: The documents embedded below include the entire set of internal business conduct standards rules approved at the CFTC Open Meeting, February 23, 2012.



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