On April 18, 2012, the Commodity Futures Trading Commission ("CFTC") and the Securities Exchange Commission ("SEC") adopted joint final rules further defining "Swap Dealer," "Security-Based Swap Dealer," "Major Swap Participant," "Major Security-Based Swap Participant" and "Eligible Contract Participant." The CFTC also adopted a final and interim final rule for commodity options. These rules implement Section 721 of the Dodd-Frank Wall Street Reform and Consumer Protection Act ("Dodd-Frank") and provide long-awaited guidance on which entities will be subject to various statutory and regulatory requirements, including registration, margin, capital and business conduct standards. The summary below is based on the CFTC open meeting and fact sheets provided by the SEC and CFTC. To date, the text of the rules has not yet been released. Compliance with the rules is effective 60 days after the final product definitions are adopted (and December 31, 2012 for commodity pool operators required to satisfy the look-through provisions for eligible contract participants).
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