On June 29, 2012, the CFTC issued a final order ("Final Order") regarding the effective date for swap regulation. On July 14, 2011, the CFTC had granted temporary exemptive relief from certain provisions of the Commodity Exchange Act that otherwise would have taken effect on the general effective date of Title VII of the Dodd-Frank Act (i.e. July 16, 2011). On May 16, 2012, the CFTC extended the temporary exemptive relief. The Final Order extends temporary exemptive relief to December 31, 2012, or, depending on the nature of the relief, such other compliance date as may be determined by the CFTC, with certain modifications from the prior order. Specifically, the Final Order removes references to the entity definitions, including "swap dealer," "major swap participant," and "eligible contract participant". Such terms were addressed in a recent final joint rulemaking of the CFTC and SEC issued on April 18, 2012. The Final Order also removes any reference to the exempt commercial market and exempt board of trade grandfather relief previously issued by the CFTC. The Final Order is effective immediately.
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