CFTC Interim Final Rule: Business Conduct and Documentation Requirements for Swap Dealers and Major Swap Participants
|FINAL RULE: The interim final rule delays the compliance dates for certain Business Conduct Standards.|
|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.
- CFTC Final Rule: Reporting, Recordkeeping, and Daily Trading Records Requirements for Swap Dealers and Major Swap Participants
- CFTC Final Rule: Conflicts of Interest for Swap Dealers, Major Swap Participants, Futures Commission Merchants, and Introducing Brokers
- CFTC Final Rule: Designation of Chief Compliance Officer and Preparation of Annual Compliance Report
- CFTC Final Rule: Duties for Swap Dealers and Major Swap Participants
- CFTC Final Rule: Confirmation, Portfolio Reconciliation, Portfolio Compression, and Swap Trading Relationship Documentation Requirements for Swap Dealers and Major Swap Participants
- CFTC Final Rule: Business Conduct Standards for Swap Dealers and Major Swap Participants with Counterparties
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