Federal Register: Regulations Establishing and Governing the Duties of Swap Dealers and Major Swap Participants

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Gavel.png FINAL RULE: This page refers to the proposed rulemaking on SD/MSP duties. For a summary of the final rule click here.

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 the establishment and governance duties of swap dealers and major swap participants .<ref>Open Meeting on Fourth Series of Proposed Rules under the Dodd-Frank Act. CFTC. Retrieved on March 7, 2011.</ref>


The Dodd-Frank Act calls for the CFTC to create specific rules outlining the duties of swap dealers and major swap participants, such as trade monitoring, risk management, conflict of interest, and compliance issues.

The Proposal[edit]

Specifically, this proposal requires swap dealers and major swap participants to:

  • Establish risk management programs that must take into account all relevant risks;
  • Monitor trading through staff training, trade supervision, and establish early warning, testing, compliance, and annual audit systems;
  • Establish business continuity and disaster recovery systems;
  • Disclose information and make it available for inspection by the commission; and
  • Adopt appropriate policies concerning anti-competitive trading or clearing practices.

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



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